Prestonschumacher.com home based-business_scams_what_to_watchout_for_when_starting_a_homebased_business
Home-Based Business Scams: What to Watchout for WhenStarting a Home-Based Businesshttp://prestonschumacher.com/home-based-business-scams-w hat-to-w atchout-for-w hen-starting-a-home-based-business.html September 17, 2012The website selling home-based businessopportunities looks like a professional newsoutlet, with a stock market ticker, videofootage, and a list of reader comments—complete with typos. But it’s really baloney.That ticker? An animation. The newsfootage? An unrelated, pirated televisionclip. And the testimonials? Internet-fraudexpert Christine Durst calls them“testiphony-als”—all posted under fakenames within a few days’ time, by crooksaiming to snare prospective entrepreneurs.As the recovery plods along, many people who have lost jobs or are looking tosupplement downsized income are likely to come across such websites offeringbig money for little work and no particular expertise. No one knows exactly howmany will be duped, but given the explosion of faux news sites during the pastyear, the returns must be good, says Durst, chief executive officer ofStaffcentrix, a Woodstock, (Conn.)-based company that has been designingcareer training programs for government and nonprofit agencies since 2001. Sheestimates hundreds of such sites, many pirating content from each other, existonline at any one time.“Scammers rely on spam, paid ads, and posts to forums to drive traffic to theirsites in huge numbers and in a short period of time,” Durst says. “This isimportant to them since, once word gets out that they are a scam, they will haveto shut the site down. Big, fast traffic ensures their success.” Many sites arehighly sophisticated, using tracking software to detect where visitors are andthen serving up “success stories” purporting to be from that visitor’s location.They can also track repeat visitors and see what sites they come from andwhere they go, the better to electronically sniff out sleuths like Durst.Last week she found a work-at-home site and started researching it. “I left theirsite to visit sites that would lead a trained eye to believe someone wasinvestigating them,” she recalls. When she went back to the original website
about 10 minutes later, it was gone. “They are very quick to hide, likecockroaches in the light.” When Durst checked again a few days later, the sitehad reappeared. “I guess they thought they shook me off. People really have noidea how sophisticated these people have gotten,” she says.Losses can range from a couple hundred dollars for work-at-home programs to$20,000 or more for people who get hooked on worthless business coaching ortraining materials that rely on pirated, decades-old books, including one Durstgot that was originally written by P.T. Barnum. Bethany Mooradian, a Seattleblogger and author of I Got Scammed So You Don’t Have To!, says scammersfrequently post ads on websites such as Monster (MWW) and Craigslist. “I findads there claiming you can make money reading e-mails, sampling products, orcompleting surveys. You might be told to pay $20 a month to get on a list whereyou’ll get freelance work opportunities, but what you get is basic information youcould easily find for free yourself,” she says.With today’s technology and a few minutes of due diligence, no one should fallfor such schemes. Many sites offer free research tools that can help check outcompanies, individuals, and websites, such as: Whois.com, Copyscape.com,TinEye.com, and Quantcast.com. To find out whether a company is legitimate,type its name plus the word “scam” or “sucks” into a search engine and look tosee if it has been listed at consumer protection sites like Ripoff Report.The main reason would-be entrepreneurs fall for scams is desperation, whichbecomes more pronounced in poor economic times, Durst says. Mooradianagrees: “People are in a position where they don’t want to wait and checksomething out thoroughly. Desperation is never good for cash flow; you mayrealize something is not logical, but you don’t stop and think about it because youwant to believe it’s true.”Sales pitches that emphasize emotion and flashy promises but skimp on detailsabout the company or actual work should be red flags. So should any businessthat describes itself generically as a “system” or “program,” Durst says. “Most ofthese scams are a mile wide and an inch deep.” If you do fall for a fraud, don’texpect to recoup your loss, but do take the time to warn others away byreporting your experience to the U.S. Federal Trade Commission, the InternetCrime Complaint Center, and your state attorney general. “You can get revengeby educating the marketplace and preventing these guys from getting othervictims,” Durst says. (original source)If you enjoyed this please ‘like & share’ this page if you want more content likethis. Work With Me Personally– EZMM
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