How to Avoid Home Business Scams


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Having a home business is a blessing in some many ways... being home with your kids, not having to drive in traffic, making extra money (or replacing the income from a job outside of the home). But you have to be careful be joining a home business because there are lots of scams out there. This slide show shares some tips on how to make sure you don't get scammed and pick the right home business for you!

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How to Avoid Home Business Scams

  1. 1. Avoiding Work at Home Scams PRESENTED BY MIKAYLA MARTINSEN
  2. 2. Tip #1: Never Pay to Get a Job While you may have to pay a start up fee to join a business opportunity, you should never have to pay to gain employment. If you are asked for money to get a job, walk
  3. 3. Tip #2: Beware of Income Claims Outrageous income claims are a red flag. No one can promise you specific earnings and high earning results are rarely typical. Stay safe and avoid companies that promise you’ll make a ton of
  4. 4. Tip #3: Delete Unsolicited Emails If you receive an email that you didn’t request and it includes information about an earning opportunity, delete it. Scammers frequently use SPAM to find their
  5. 5. Tip #4: Strange Emails from Friends On the other hand, if you receive an email from a friend about an earning opportunity, make sure they actually sent it. Scammers sometimes use email addresses to make you think a friend is sending
  6. 6. Tip #5: Don’t Dial 1-900 Numbers Beware of opportunities that ask you to call a 1-900 number. You could be in for some astronomic phone bill charges. And never give your credit card number on a 1-800
  7. 7. Tip #6: Fully Research the Company If you are going to take a telecommuting job or join a business opportunity, thoroughly research the company first. Ask questions, check the BBB, talk to others who work for the company and
  8. 8. Tip #7: Legit Job Sites aren’t Immune Even if you’re using a legitimate job site like Monster or Career Builder, realize they are not immune to scammers. Always do your
  9. 9. Tip #8: Don’t Give Out Personal Info Avoid giving our your SSN, driver’s license, or other sensitive information when applying for jobs. If someone is asking for your personal info, ask why and do your due diligence
  10. 10. Tip #9: Understand Pyramid Schemes People often mistake Multi- Level Marketing (MLM) for Pyramid Schemes, but they are not the same thing. A pyramid scheme is where people earn money by recruiting others and there is no real product for sale. They are illegal. Find out if the company has a legitimate product to
  11. 11. Tip #10: Understand Ponzi Schemes Ponzis are marketed as investment opportunities with high payouts. However, the payouts are made to earlier members by the contributions of later members and funds will eventually run out. They are also
  12. 12. Tip #11: If It’s Too Good to Be True… When it comes to any money- making opportunity, the old adage rings true. If it sounds too good to be true, it might be! Be careful - do your own due diligence - and be sure of your decision before you
  13. 13. Tip #12: Desperation Attracts ScammersTimes are tough. If you are outof work and are in great needof money, don’t advertise thisonline or to people trying toshare an opportunity.Scammers feed offdesperation and by showingyours, you ask them to
  14. 14. Tip #13: Ignorance is Not a Legal Excuse Many people think that if they don’t know it’s a scam, they won’t get in trouble. However, by ignoring red flags about an opportunity you’re involved with means you’re just as guilty in the eyes of the law as anyone
  15. 15. Common Scam: Mystery Shopping Mystery Shopping is a legitimate business, but there are scammers taking advantage every day. Scammers send fraudulent cheques by mail and ask you to mystery shop money wire transfer businesses (which sends a certain amount of the cheque back to the scammer). Your bank will hold you liable for the entire amount of the fraudulent check. Reference:
  16. 16. Common Scam: Reshipping Packages In this one, the company asks you to repackage and ship packages for them. The problem is, they are usually goods purchased using a stolen credit card, so essentially you are shopping stolen goods. Reference:
  17. 17. Common Scam: Auto-Surf Programs Auto-surf programs that are promoted as investment opportunities that pay you for viewing websites (i.e. “surfing” the web) are ones you should stay away from. These programs promise you an unusually high return on your investment, putting them in the “too good to be true” category. These types of opportunities are Ponzi schemes because they use the investments made by new members to pay the promised returns to older members. Reference:
  18. 18. Common Scam: Craft Assembly You may see an opportunity to put together products or crafts for a Craft and other assembly. These companies will ask you to assemble items like crafts or jewelery and ship them back, only to reject them. The company not only refuses to pay you for your work, but you are also out the money you paid for supplies and shipping. Reference:
  19. 19. Common Scam: Modern “Chain Letter” You don’t see the chain letter scam where you send money to a few people and get a certain amount of money back as much anymore. That’s because scammers have evolved to the online world. Now you post online ads telling people can make money by sending you money. Then they are shown how to post ads to make money and the modern-day pyramid scheme continues. References: and
  20. 20. Common Scam: 419 Scam By now, most of us have heard of the Nigerian or 419 Scam, but still so many people fall for it every single day. The story is usually a persecuted wealthy foreigner who needs to get their money out of the country and they need your help. People get roped into the promise of riches by parting with money they often don’t have themselves. Reference:
  21. 21. Common Scam: Foreign Craigslist Buyer If you are selling an item online and someone tells you they want to buy, but they’re out of town, approach with caution. The scammers will tell you they’ll send you extra money to pay a shipping agent. You pay the agent, send the product and then you find out the funds were fraudulent and you’re on the hook. They may also tell you that they have sent the funds by PayPal. You receive an email that looks like it’s from Paypal, stating the funds are being held until the item is shipped. The email is fake and PayPal never holds funds until they are shipped. It’s a
  22. 22. Be Smart and Exercise Caution Again, if it seems too good to be true, it just might be. If your research doesn’t prove otherwise, just walk away. Legitimate opportunities are out there!
  23. 23. Ready for Legitimate Work from Home? Skinny Body Care is a legitimate direct sales company and home business opportunity that you can build online. The cost to join is less than your monthly cable bill and you can check it our for free! Take a free tour today at: