Work At Home Scams

We'll look at some typical scams and 5 questions to ask to ensure you avoid scams.

Common Work At Home Scams

You have probably seen ads on telephone poles, street signs, and in the newspaper stating something like this:

"Earn thousand of dollars a month - from your home - Processing Medical Billing Claims."

You may find these ads appealing, but be careful. These could be work at home scams. Here is what you may not know, that these types of ads do not disclose:

You may have to work many hours without pay

There may be a charge for more information or an entry fee

You may have to spend your own money placing newspaper ads in order to get work

You may have to purchase your own supplies, such envelopes, paper, stamps, and equipment

You may have to pay for your training, which usually comes in the form of instructions or "tutorial" software

Please know that people deceived by these ads (by these work at home scams) have lost thousands of dollars, time, and energy. It's sad, but true and leaves a person feeling discouraged and extremely disappointed.

The good news is that there are legitimate work at home jobs out there. Work at home is usually referred to as telecommuting. Before we get into which questions to ask to separate the work at home scams from the legitimate jobs, lets' look at a few of the more common work at home scams.

Medical billing:

The pitch goes something like this "there's a crisis in the health care system, due partly to the overwhelming task of processing paper claims. The solution is electronic claim processing. Because only a small percentage of claims get transmitted electronically, the market for billing centers is wide open."

Not true!

I have been a consultant in the health care industry. The reality is that competition in the medical billing market is high and revolves around a number of large and well-established firms.

In addition, you'll be required to invest anywhere from $2,000 to $8,000, for software, training and technical support. But the reality of making such an investment is that few consumers who spend this kind of money on a medical billing business are able to find clients, start a business and generate an income. This fits with work at home scams partly because this really isn't work at home is it. It's a home based business in which you have start-up costs, marketing expenses, etc.

Envelope stuffing:

I do not recommend mailing or envelope stuffing programs. Let me clarify this a bit more - STAY AWAY FROM ENVELOPE STUFFING OFFERS!! These are work at home scams. I know people who have gotten sucked into this and it is a waste of time and money.

Here is how it works (or doesn't work!):

The ad will state for a small fee - usually anywhere from $25 - $50 - you will be told how to earn money-stuffing envelopes at home. After you pay the $25 or $50 you find out that the promoter never had any employment to offer. Instead, for your fee, you get a letter telling you to place the same "envelope-stuffing" ad in newspapers to attract more willing victims.

The only way you'll earn money is if people respond to your ad. Kind of sounds like a vicious circle where money is simply exchanging hands with nothing of value behind the expenditure.

Assembly or Craft Work:

With assembly or craftwork you're required to invest hundreds of dollars in equipment or supplies. Then you will spend a lot of time producing goods for a company that has promised to buy them.

Example: You have to purchase a sewing or sign-making machine from the company, or materials to make items like aprons, baby shoes or plastic signs.

The catch: You don't get paid because your work did not meet the company's "quality standards." In fact, no one's work ever meets the company's quality standards - it's just a cover for getting away with not ever paying for the work that was done. Where the company is making money is on the purchase you made from them up front.

So you're left with relatively expensive equipment and supplies - and no income. If you are going to make any money you'll have to find your own customers.

No Experience Necessary:

A company is not going to hire someone with no experience to work from home because:

1. The training process would be too difficult.
2. Companies look for telecommuters who have a experience in type of work the job requires to produce.
3. Companies look for people who have a proven track record working independently with no supervision.

Money is the Only Requirement for the Job

Legitimate companies will tell you what the required skills and responsibilities are for the job. Then they will ask you for your qualifications, a cover letter, a resume, and references.

Scammers, on the other hand, ask for money. As long as you send them your money, you're qualified.

5 Questions to Ask

If the work at home program is legitimate the representative will provide in writing what's involved in the program.

Here are some questions you might ask a representative:

1. What tasks will I have to perform? Ask the program sponsor to list every step of the job.

2. How will I be paid? Ask if you're going to be paid a salary, hourly or based on a commission? If it is commission based what is the percentage, how often will you be paid, and how are they keeping track of the work from which your commission will be based?

3. Who will pay me?

4. When will I get my first paycheck?

5. What is the total cost of the work-at-home program, including supplies, equipment and membership fees? What will I get for my money?

Get the answers to these questions. The answers will may help you determine if a particular work-at-home job is right for your and whether it is legitimate.

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