When people are looking online for work, they often get involved with working at home scams. Most either promise outrageous sums to be made, or advertise little or no work required. As tempting as these seem to be, they generally are not true. Here are some examples of working at home scams to avoid.
Beware Working At Home Scams Involving Little Work
One such company promising $5,000, $10,000 or $20,000 or more was MOBE. Unfortunately, the people involved with this company made little or no money. They had no products. They were selling a program to sell MOBE to more and more people. The program was to sell MOBE
The FTC reports MOBE scammed people out of more than $125 Million dollars. You can read the whole story in my article below
The claims Made by these scams are always the same.
- You Make Big Money
- You Make Your Money Quickly And Easily.
- They Use Time Pressure – Today Only! Buy in the next 24 hours, or it will be gone forever!
Five Separate Companies Ripped People Off
Another company that promised you could make $58,500 working 5 hours a week. Be very skeptical of these promises. Understand one thing, they are out to get your money. According to a complaint by the FTC, Gregory W. Anderson, Garrett P. Robbins, and five companies they controlled ripped people off.
An upfront fee of $97 dollars, allowed you to make money posting links on websites. Consumers soon realized it was not true.
They actually hired an affiliate network to promote their program. The program contained ad links that routed people to a website containing fake testimonials and reviews. The scam made it look like their business was endorsed by respected people.
They Made Money On Bogus Programs And Sold Bogus Coaching Scams
These websites linked to the owners website where people could pay for their program. The programs were marketed under the names of Online Cash Commission, Excel Cash Flow, and most recently Cash From Home. They made several million dollars from the bogus program and several million more directing people to other coaching programs selling for thousands more.
The FTC Charged them with violating the FTC Act, the Business Opportunity Rule, and the Telemarketing Sales Rule.
Working At Home Scams – No Experience Needed
A work at home scam is described as a work at home scheme by Wikipedia, and referred to as a get rich quick scam. It doesn’t matter how you define it, the result is the same. The true purpose is to extort money from the victim. I have listed some common working at home scams here.
- Envelope Stuffing – This is an older scam that has been around for decades. It originated during the Great Depression of the 1920’s and 1930’s. The scheme is simple. You are paid $2 to stuff each envelope. The fee is $2, and the victim receives a flyer to post and advertise for the same scheme. The victim stuffs the envelope with flyers of the same scheme and it perpetuates itself.
- Assembly Work – The type of items vary, including crafts and jewelry, or may require a purchase of a sewing machine to make clothing like aprons. After investing in equipment, you spend hours assembling the products. when you finish your work, the company tells you your products are “poor quality” and refuses to pay you. Nobody’s work is ever any good.
More Common Working At Home Scams
- Rebate Processing – You answer the ad to earn money processing rebates. You pay a fee and promised to earn much more. Supposedly a qualified person will teach you how they did it. You actually receive useless training materials. The truth is, no rebates exist, and no one gets a refund.
- Medical Billing – Ads promise substantial income with no experience needed. With an investment of hundreds or thousands of dollars, you will get all the training, equipment, and client lists you need to launch your own medical billing business. What you get are out of date lists, and doctors who haven’t asked for your services. Few people find clients or generate income. The investment is lost.
- Multilevel Marketing – Multilevel Marketing ( MLM ) is supposed to be legitimate, and many are. But, some MLM’s are not legitimate. Legitimate MLM’s earn commissions for the products they sell. and sales by people they recruit. However some are basically pyramid schemes. They get individuals to make a payment to join, and they receive a share from any additional members they recruit. The people at the top also receive a portion of every payment. It is in the best interest for the top people to encourage recruiting. The pyramid scheme eventually runs out of people and fails. There is just not enough people on the planet to sustain the math.
Work At Home Scams Video From The FTC- A True Story
FTC Rule Identifies Working At Home Scams- Keeping You Safe
The Federal Trade Commission (FTC) requires businesses to use The Business Opportunity Rule. This rule allows everyone to evaluate whether a business is legitimate or risky. It covers people buying into a business opportunity. Sellers must give a disclosure document with 5 pieces of information.
The Disclosure Document
- Identify the seller.
- Disclose any lawsuits.
- Explain any cancellation or refund policy and the terms.
- Any earnings claim must be verified with an earnings claim statement.
- List of references.
The Earnings Claim Statement
All earnings must be verified by the Earnings Claim Statement.
- Name and date of person making the claim.
- Specifics of the claim.
- Designate time period when earnings were achieved.
- Number and percentage of people who made the money
- Where they live
- Statement of written proof is available upon request.
This information offers you the best chance to evaluate the business and walk away if things don’t add up. This could prevent you from getting into any of these scams.
The revised Business Opportunity Rule lists practices that are against the law:
- Saying anything that contradicts the disclosure and earnings documents.
- Designate the position being offered. Is it a job or business opportunity?
- Illegal to misrepresent the nature of the investment.
This revised Rule now gives greater protections for buyers. But, only if you understand the sellers requirements. If they did not offer any disclosure or earnings claim document, they are not complying with the law. This should be a red flag, and is likely a scam.
If A Business Turns Out To Be A Scam – Report It
Another working at home scams shut down by the FTC after receiving complaints of it being fraudulent businesses.
Vision Solution Marketing LLC had temporary restraining orders entered into court on May 4th, and May 14th, 2018. respectively. The FTC froze all assets from Vision Solutions Marketing. All sales were halted.
The FTC charged Vision Solutions Marketing with deceptive claims. The ads referred to their business as a coaching service. It’s purpose was to help consumers start their own business. They also claimed this coaching program would enable the businesses to earn thousands of dollars a month. It was a scam.
People who were buying work at home programs for less than $100 were the sales targets. Then, these programs referred people to specialists who eventually sent them to Vision Solutions telemarketers. They sold the bogus coaching program for $13,995.
Consumers would use their credit cards to pay for the program, only to find out it was information available on the internet for free. They also racked up fees for separate financial services. People who purchased the program did not develop functioning businesses and ended up heavily in debt.
All the defendants in the case were charged with violating the FTC Act and the Telemarketing Sales Rule
How To File A Complaint
Do Your Homework -There Is No Magical Solution
People looking for the magical solution to making money, need to understand it is not possible. The internet has made it possible for scammers to make a living, by painting this picture of instant wealth creation. The Internet has created many millionaires. But, not instantly. Most scammers lead everyone to believe it happens overnight.
Tired of scams? Try a money making system that works. It is a legitimate program that will give you the opportunity to change your life forever. It is not a get rich quick scheme, and you can try it out for free. Take whatever time you need. Look over the training and start when you are ready. Interested?
Thank You for reading my post. If you have any questions or comments, please leave them below. I answer all my readers ASAP.
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I am Chas, creator and founder of Help For Scams And Frauds. I started affiliate marketing and earning money online in 2015. And I can tell you, anyone can do this. But, in order to build a business the right way you must have the right training and avoid the get rich quick schemes.
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