5 Work at Home Scams to Watch out For

According to the FBI

Web fraud claims exploded in the year 2002 and since then, it is as if half the criminals in the world went online.  The most interesting thing though is that the anonymity of interacting with people online is what fuels most fraudsters – combined with most people’s desires to make quick cash or diving into the world of online work and commerce without understanding how it really works.  Scams are so prevalent today such that out of every five job and business opportunity listings online, four are most likely to be scams.

How to avoid getting scammed?

To avoid getting scammed, know how to identify the scams from legitimate work at home jobs.  The first rule you need to follow to avoid getting scammed is – never pay to get a job.  This, combined with the rule of you cannot get a job where you can make hundreds of dollars every day with no experience or, should keep you covered.  But what are the most common scams today to look for?  Here is a list of 5 scams that are old but innocent people still lose money to.

5. Simple typing and copy-paste

The listings of simple typing and copy-paste work at home jobs are often very catchy and promising.  No experience or skills required, just enter a few letters on to a box and make $100 instantly! But before you get there, you have to pay just ‘a little’ administration fee of $50 to be hooked up with the job site.  Really? This is 2012, and typing is no longer a skill.  Such a job does not exist.

4. Multi-Level Marketing (MLM) or Network Marketing

Multi-Level Marketing (MLM) opportunities can be done over the internet. Network marketing, which MLMs are derived from, are real marketing strategies. MLMs involve you recruiting a few of your friends and family to make money, and them doing the same. The core objective of these plans is usually to sell valuable products at discounts or retail and recruit others to do the same. Beware of MLM programs that only reward recruiting efforts where nobody is really selling a valuable product.

3. Stuffing envelopes

This scam has been around for ages – actually since the 1920s to 1930s depression – but many scammers still use it to entrap people who are new to the work at home ‘online’ concept.  The promise a job seeker $2 to $5 for every envelope stuffed, but first they need to pay $250 or $500 to be let into ‘members area’ where they are guaranteed 1,000 envelopes to stuff every week.  Never fall for this scam, it is one of the worst scams and there is never a work at home opportunity that offers such an opportunity.

2. Email Processing

This is a variation of envelope stuffing scam.  People are asked to pay a certain fee, say $50, in order to be added to the list of email recipients.  They are promised that every email they receive and read ‘from the comfort of their home’ pays $2 to $4 and there are over 100 emails to process each day.  A naïve person could easily fall for this since it ‘requires no special skills’ or experience.

1. Turning a computer into an automated money making machine

This scam is half-true.  There are ways to automate money making online, but it is often complicated and opportunities never offer themselves anyhow.  If you trade in forex, you can make money while you are away from home.  But you cannot install a software you do not understand and expect to receive a check in two weeks.

Which of these scams have you encountered?  Have you lost money to any of them?  If not, learn from those who have, and know how to identify a scam from a real work at home job or business opportunity.