SCAMS BULLETIN Host Jay White is a volunteer attorney who provides free legal services for low income seniors in San Mateo County, California.

December 17, 2019

WORK AT HOME SCAMS

WORK AT HOME SCAMS

Home-based business and work-at-home opportunity scams rank very high on the list of the top types of Internet fraud.

                                                PART I

There are two basic types of Work-at-Home and Home-Based Business scams. Scammers using both types are aiming at folks who want to make money from home, either by:

1.– Having you work from home, doing envelope stuffing, craft assembly, or other tasks where you are (supposedly) paid by a company as an employee.

There are certainly some legitimate telecommuting jobs, but work-from-home jobs are often just big scams.

2.– “Helping” you start your own home-based business, as a mystery shopper, network marketer, or other businesses where the only money anyone sees is the money the scammer pockets.

Why Are These Scams So Successful?

It all comes down to psychology. Besides the “make money fast” dream that many Internet newcomers fall prey to, home-based “opportunities” scammers mooch off the following groups:

*The Sick, Disabled, or Elderly: If you are elderly, ill, or have a disability, you may have problems landing a traditional job.

*The Stay-At-Home Mother: Whether you have a spouse or you’re single, you may be looking to supplement or create an income while raising children.

*The Low-Income or No-Income Family: You or your spouse may have just lost your job, and you feel desperate and anxious to find work as the bills pile up.

*The Person Without Higher Education: You’re not stupid or dumb — you just didn’t go on to college or university.

To summarize, these scammers are often preying on people without a lot of money.

                                                PART II

Noted Work-At-Home Scams:

*Craft Assembly Starter Kits. This scam encourages you to assemble toys, dolls, or other craft projects at home with the promise of high per-piece rates. All you have to do is pay a fee up-front for the starter kit… which includes instructions and parts. Sounds good? Well, once you finish assembling your first batch of crafts, you’ll be told by the company that they “don’t meet our specifications.” The scammer company is making money selling the starter kits — not selling the assembled product.

*Medical Billing. In this scam, you pay $300-$900 for everything (supposedly) you need to start your own medical billing service at home. You’re promised state-of-the-art medical billing software, as well as a list of potential clients in your area.

What you’re not told is that most medical clinics process their own bills, or outsource the processing to firms, not individuals. Your software may not meet their specifications, and often the lists of “potential clients” are outdated or just plain wrong.

*Email Processing. This is a twist on the classic “envelope stuffing scam”. For a low price ($50?) you can become a “highly-paid” email processor working “from the comfort of your own home.”

Now… what do you suppose an email processor does? If you have visions of forwarding or editing emails, forget it. What you get for your money are instructions on spamming the same ad you responded to in newsgroups and Web forums!

* “A List of Companies Looking for Homeworkers!”: In this one, you pay a small fee for a list of companies looking for homeworkers. The only problem is that the list is usually a generic list of companies, companies that don’t take homeworkers, or companies that may have accepted homeworkers long, long ago. If you send money, don’t expect to get it money back with this one.

* “Just Call This 1-900 Number for More Information…”: Don’t spend too much time (or money) on this one. 1-900 numbers cost money to call, and that’s how the scammers make their profit. Save your money — don’t call a 1-900 number for more information about a supposed work-at-home job.   

                                                PART III

*Typing at Home: If you use the Internet a lot, then odds are that you’re probably a good typist. How better to capitalize on it than making money by typing at home?

Here’s how it works: After sending the fee to the scammer for “more information,” you receive a disk and printed information that tells you to place home typist ads and sell copies of the disk to the suckers who reply to you. This scam tries to turn you into a scammer!

 “Turn Your Computer into a Money-Making Machine!”:  Well, this one’s at least half-true. To be completely true, it should read: “Turn your computer into a money-making machine… for spammers!” Once you pay your money, you’ll be sent instructions on how to place ads and pull in suckers to “turn their computers into money-making machines.”

*Multi-Level Marketing (MLM):  If you’ve heard of network marketers (like Amway), then you know that there are legitimate MLM businesses based on agents selling products or services. One big problem with MLMs, though, is when the pyramid and the ladder-climbing become more important than selling the actual product or service.

If the MLM business opportunity is all about finding new recruits rather than selling products or services, beware. The Federal Trade Commission may consider it to be a pyramid scheme… and not only can you lose all your money, but you can be charged with fraud, too!

                                                PART IV

*Chain Letters/Emails (“Make Money Fast”): If you’ve been on the Internet for any length of time, you’ve probably received or at least seen these chain emails. They promise that all you have to do is send the email along plus some money by mail to the top names on the list, then add your name to the bottom… and one day you’ll be a millionaire.

Actually, the only thing you might be one day is prosecuted for fraud. This is a classic pyramid scheme, and most times the names in the chain emails are manipulated to make sure only the people at the top of the list (the true scammers) make any money.

*Envelope Stuffing:

This is THE classic work-at-home scam. It’s been around since the U.S. Depression of the 1920s and 1930s, and it’s moved onto the Internet like a cockroach you just can’t eliminate.

There are several variations. You are promised to be paid $1-2 for every envelope you stuff. All you have to do is send money and you’re guaranteed “up to 1,000 envelopes a week that you can stuff… with postage and address already affixed!”

When you send your money, you get a short manual with flyer templates you’re supposed to put up around town, advertising yet another bogus work-from-home scheme.

Any scam victim can report it to the US Trade Commission at www.ftc.gov.

Attribution: scambusters.org