Awesome
Job or Devious Scam?
CareerBuilder.com.
Anyone who has ever looked for a job
has certainly seen countless ads
that simply sound
too good to be
true.
What do these ads look like?
They probably included phrases such
as:
Make $4,000 a Week from Home -- No
Sales!
No experience
necessary!
Earn $35,000 - $50,000 a year
working part-time!
Sounds great, right? Well, like
most things in life, if it seems too
good to be true, it usually is.
From
envelope-stuffing schemes to mystery
shopper promotions, the world of
scam ads is wide and complex. The
problem with many work-at-home
schemes is that they require the
worker to spend their own money to
get started, and once they do,
there's often no return on
investment. In many cases, you
will have to foot the bill for
supplies, starter kits, training and
more. Other situations that
claim to be "easy money with no
sales" often do involve a great deal
of sales work in challenging
environments.
Sheila Adkins, spokesperson for the
Council of Better Business Bureaus,
says that while there are some
credible work-at-home opportunities
out there, many of these ads are not
the real thing. "It's very hard to
find a legitimate work-at-home
opportunity through an ad like
these."
Adkins says there are clues that can
help you figure out if an ad is
a great opportunity or a dangerous
scam.
1. Be
Alert for Red Flags. "One sure red flag is when you
review the ad and it does not say
specifically what the work will be,"
she says. Another, is the phrase "no
experience necessary," especially
when coupled with the promise of big
money. Promises like these should
tell you right away that the
opportunity is not legitimate. Be
cautious, too, of any companies that
operate outside the country.
2. Do Your
Research.
If you are trying to
sort the good from the bad, Adkins
says you have to do a little
investigative work. She suggests
checking with the Better Business
Bureau, your state's Attorney
General, and other state business
offices to see if the company is
licensed and registered to do
business in your state. Most
fraudulent companies will not go
through the work of filling out the
paperwork and registering with the
appropriate organizations.
3. Insist on a
Face-to-Face Meeting.
If the company
representative wants to conduct all
business with you via e-mail, phone
and fax, look out. Adkins says you
should always ask for a face-to-face
meeting before taking on a business
opportunity.
4.
Don't Give out Personal Information.
Many con artists use business
opportunity schemes to gather
personal information for identity
theft. You should never give out
information like your Social
Security number or bank account
number, especially over the phone or
online.
5. Look Out
For "Pay to Play" Opportunities.
"Beware of
any company that requires money to
be sent or involves large startup
costs," Adkins says. Yes, there are
some work-at-home opportunities that
are legitimate and require an
initial investment, such as selling
Mary Kay cosmetics or Avon products.
But Adkins points out that these are
established companies that have been
around for years and have positive
reputations.
6. Ask lots of questions.
If you have found a possible
opportunity and have scheduled a
face-to-face meeting,
Adkins says you need to be prepared to ask many questions, including:
Who
will be paying me?
How
often will I be paid?
What
exactly will I be doing?
Is
this contract-based or permanent
work?
Where
is your company's physical location?
Does
your company operate under any other
names?
What
is the total cost for me to
participate in this program?
What
is your company's privacy policy?
If
you are not satisfied with answers
to any of these questions, then
simply walk away.
Even if you are satisfied,
Take time to verify what they told
you.
Yes, many people
do earn a living working from home.
But it is important to understand
that most of these individuals are
working in a field in which they
already have experience.
Establishing a home-based business
takes a lot of work, dedication,
contacts and time. If a company
tells you that you can make it to
the top immediately, you are
probably better off moving on to the
next opportunity.
Too
Good to Be True? Six Common Job Scams
Michael Hargis, CareerBuilder.com Vice
President of Customer Care
Lured by convenience and seemingly
easy money, more and more people are
falling prey to job scams.
Particularly vulnerable are people
who want or need to work from home
and those who are looking supplement
their income. Those who fall victim
can suffer serious consequences
including debt collection and
criminal charges.
Work-at-home
scams are varied and can be more
difficult to detect. They come in
many different forms and change
regularly. To protect yourself, it's
important to be aware of the various
scams lurking and what to do if you
suspect you discover one.
Here are six of today's most
common job scams:
1.
Nigerian Check Cashing Scam
The Nigerian check cashing scam
usually involves transferring funds
internationally. The scam artist
attempts to reassure the victim by
offering apparently legal contracts,
forged or false documents bearing
company letterhead, false letters of
credit, payment schedules and bank
drafts.
Once the scammer has obtained the
victim's trust, checks, money orders
or wire deposits are sent to the
victim for "processing." The victim
is asked to cash the check or money
order (wire deposits will send the
money directly to the victim's
account) and send a percentage of
the funds back to its origination.
The need for the "middle man" is
often explained as being a way
around international fees or taxes.
Once the funds are sent back to the
scammers (usually the victim is told
to keep a percentage for themselves,
as payment for their services), the
victim's bank or financial
institution learns that the
check/money order/wire transfer was
fraudulent. The funds are then
subtracted from the victim's account
and he or she is made liable for the
lost money.
2. Reshipping
Reshipping scams often begin with an
employment offer, usually via
e-mail. As with the Nigerian scam,
these "employers" offer bogus
contracts and other documentation to
make them appear legitimate. Once
the victim's trust has been
obtained, packages are shipped to
the victim's residence with
instructions to reship the packages
to another address. Once the package
has been reshipped, the victim is
"guilty" of receiving and shipping
stolen property. This often leads to
a visit from police, as the return
address or shipping receipts lead
back to the victim.
3. Envelope Stuffing Scams
These scams usually incorporate a
"registration fee" which must be
paid before work begins. Once this
fee has been paid, the "employee" is
asked to post an ad -- often the
exact same ad that the "employee"
responded to -- using his or her own
contact info. Once the "employee"
receives a response to their ad, he
or she will stuff an envelope with
information/instructions on how to
get started and mail it to the new
applicant. The victim is "paid"
based on the number of responses
received from the ad.
4. Medical Billing
Advertisements for these prepackaged
businesses always contain an initial
financial investment. The ad or
solicitation explains that only a
small percentage of medical claims
are transmitted electronically and
that the market for medical billing
is wide open. In reality, the
medical billing industry is fierce
and revolves around several large
and well-established firms. Because
competition is so prevalent, few
consumers who purchase medical
billing business opportunities are
able to locate clients to generate
enough revenue to profit, and they
usually can't even earn enough to
recover their initial financial
investment.
5. Work-at-Home Job Lists
These scams claim to sell lists of
companies that are hiring for
work-at-home positions. These lists
are rarely updated and often yield a
list of worthless leads.
6. Phishing
Phishing scams are cleverly hidden
attempts to get your account
information. These e-mails appear
legitimate -- with
professional-looking company logos
and information -- and often claim
that there is an urgent need for you
to log into your account and verify
personal information. If you receive
one of these e-mails, check the
destination URL on the provided link
before attempting to login or submit
any information; the links could
actually lead the recipient to a
false Web site. The victim may be
asked to update their banking
information or other sensitive
information, which the site owner (aka
scammer) will use for any number of
illegal purposes.
Protect yourself
Before you send any money responding
to job ads or completing job
placement contracts, the Better
Business Bureau offers the following
tips to help job seekers avoid these
types of scams:
Avoid job listings that use
these descriptions: "package
forwarding," "reshipping," "money
transfers," "wiring funds" and
"foreign agent agreements." These
and similar phrases should raise a
red flag.
Do not be fooled by
official-sounding corporate names.
Some scam artists operate under
names that sound like those of
long-standing, reputable firms.
Never forward or transfer money
from any of your personal accounts
on behalf of your employer. Also, be
suspicious if you are asked to
"wire" money to an employer. If a
legitimate job requires you to make
money transfers, the money should be
withdrawn from the employer's
business account, not yours.
Do not give out your personal
financial information.
A potential
legitimate employer will not request
your bank account, credit card or Paypal account number. Only provide
your banking information if you are
hired by a legitimate company and
you choose to have your paycheck
direct deposited.
Do not fax copies of your ID or
Social Security number to someone
you have never met. Credit checks
and fake IDs can be obtained with
this information. Only give these
documents to your employer when you
are physically at the place of
employment.
If you have questions about the
legitimacy of a job listing, contact
your Better Business Bureau, your
state or local consumer agency or
the Federal Trade Commission.
Top
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More Info Might save your Self respect
These business opportunities
make it sound easy to start a business that will bring lots
of income without much work or cash outlay. The
solicitations trumpet unbelievable earnings claims $1,000 a
day or more without doing any work. Many business
opportunity solicitations claim to offer a way to make money
in an Internet-related business. Short on details but long
on promises, these messages usually offer a telephone number
to call for more information. In many cases, you'll be told
to leave your name and telephone number so that a
salesperson can call you back with the sales pitch.
The scam: Many of these are illegal
pyramid schemes masquerading as legitimate opportunities to
earn money.
2. Bulk
email
Bulk email solicitations offer to sell
you lists of email addresses, by the millions, to which you
can send your own bulk solicitations. Some offer software
that automates the sending of email messages to thousands or
millions of recipients. Others offer the service of sending
bulk email solicitations on your behalf. Some of these
offers say, or imply, that you can make a lot of money using
this marketing method.
The problem: Sending bulk email
violates the terms of service of most Internet service
providers. If you use one of the automated email programs,
your ISP may shut you down. In addition, inserting a false
return address into your solicitations, as some of the
automated programs allow you to do, may land you in legal
hot water with the owner of the address's domain name. There
are also very strict rules, known as the CAN-SPAM Act,
regulating bulk email marketing.
3. Chain
letters
You're asked to send a small amount of
money ($5 to $20) to each of four or five names on a list,
replace one of the names on the list with your own, and then
forward the revised message via bulk email. The letter may
claim that the scheme is legal, that it's been reviewed or
approved by the government; or it may refer to sections of
U.S.
law that legitimize the scheme.
The scam: Chain letters are almost
always illegal and nearly all of the people who participate
lose their money. The fact that a "product" such
as a report on how to make money fast may be changing hands
in the transaction does not change the legality of these
schemes.
4.
Work-at-home schemes
Envelope-stuffing solicitations promise
steady income for minimal labor-for example, you'll earn $2
each time you fold a brochure and seal it in an envelope.
Craft assembly work schemes often require an investment of
hundreds of dollars in equipment or supplies, and many hours
of your time producing goods for a company that has promised
to buy them.
The scam: You'll pay a small fee to get
started in the envelope-stuffing business. Then, you'll
learn that the email sender never had real employment to
offer. Instead, you'll get instructions on how to send the
same envelope-stuffing ad on your own. If you earn any
money, it will be from others who fall for the scheme you're
perpetuating.
5. Health
and diet scams
Pills that let you lose weight without
exercising or changing your diet, herbal formulas that
liquefy your fat cells so that they are absorbed by your
body, and cures for impotence and hair loss are among the
scams flooding email boxes.
The scam: These gimmicks don't work.
The fact is that successful weight loss requires a reduction
in calories and an increase in physical activity. Beware of
case histories from "cured" consumers claiming
amazing results and testimonials from "famous"
medical experts you've never heard of.
6.
Effortless income
The trendiest get-rich-quick schemes
offer unlimited profits exchanging money on world currency
markets; newsletters describing a variety of easy-money
opportunities; the perfect sales letter; and the secret to
making $4,000 in one day.
The scam: If these systems worked,
wouldn't everyone be using them? The thought of easy money
may be appealing, but success generally requires hard work.
7. Free
goods
Some email messages offer valuable
goods-for example, computers, other electronic items, and
long-distance phone cards-for free. You're asked to pay a
fee to join a club, then told that to earn the offered
goods, you have to bring in a certain number of
participants. You're paying for the right to earn income by
recruiting other participants,
but your payoff is in goods,
not money.
The scam: Most of these messages are
covering up pyramid schemes, operations that inevitably
collapse. The payoff goes to the promoters and little or
none to you.
8.
Investment opportunities
Investment schemes promise outrageously
high rates of return with no risk. Many are Ponzi schemes,
in which early investors are paid off with money contributed
by later investors. This makes the early investors believe
that the system actually works, and
encourages them to
invest even more.
The scam: Ponzi schemes eventually
collapse because there isn't enough money coming in to
continue simulating earnings. Other schemes are a good
investment for the promoters, but no for participants.
9. Cable
descrambler kits
For a small sum of money, you can buy a
kit to assemble a cable descrambler that supposedly allows
you to receive cable television transmissions without paying
any subscription fee.
The scam: The device that you build
probably won't work. Most of the cable TV systems in the
U.S. use technology that these devices can't crack. What's
more, even if it worked, stealing service from a cable
television company is illegal.
10.
Guaranteed loans or credit, on easy terms
Some email messages offer home-equity
loans that don't require equity in your home. Usually, these
are said to be offered by offshore banks. Sometimes they are
combined with pyramid schemes, which offer you an
opportunity to make money by attracting new participants to
the scheme.
The scams: The home equity loans turn
out to be useless lists of lenders who will turn you down.
The promised credit cards never come through, and the
pyramid schemes always collapse.
11. Credit
repair
Credit repair scams offer to erase
accurate negative information from your credit file so you
can qualify for a credit card, auto loan, home mortgage, or
a job.
The scam: The scam artists who promote
these services can't deliver. Only time, a deliberate
effort, and a personal debt repayment plan will improve your
credit. The companies that advertise credit repair services
appeal to consumers with poor credit histories. Not only
can't they provide you with a clean credit record, but they
also may be encouraging you to violate federal law. If you
follow their advice by lying on a loan or credit
application, misrepresenting your Social Security number, or
getting an Employer Identification Number under false
pretenses, you will be committing fraud.
12.
Vacation prize promotions
Electronic certificates congratulating
you on "winning" a fabulous vacation for a very
attractive price are among the scams arriving in your email.
Some say you have been "specially selected" for
this opportunity.
The scam: Most unsolicited commercial
email goes to thousands or millions of recipients at a time.
Often, the cruise ship you're booked on may look more like a
tug boat. The hotel accommodations likely are shabby, and
you may be required to pay more for an upgrade. Scheduling
the vacation at the time you want it also may require an
additional fee.
In Closing
Don’t check your common sense at the
door simply because you are surfing the web. If it seems to
good to be true, it is. Don’t fall victim to these scams.
