SACRAMENTO, Calif. — "Earn $1,000 a month from home!"
"Make money now without ever leaving your house!"
You've seen those ads. Trust me, we are all looking for ways to earn a little earn extra income, but in many cases, these promises are too good to be true!
According to the Federal Trade Commission, there are three scams that happen enough that everyone should keep an eye out for, so you don't end up losing money before you even make it. If you do decide to go with any work-from-home ad, ask a lot of questions, find out everything you can about the company and get your agreement in writing.
SCAM 1 — ENVELOPE STUFFING:
These ads will tell you for a small "fee", you will learn how to make lots of money stuffing envelopes. But the truth is, the promoter never had any work for you in the first place.
SCAM 2 — CRAFT WORK:
Listen up Craftors! These ads will get you to buy equipment and supplies to make products for a company that will refuse to pay you because your work is "not up to standard." How convenient, right?! Now you're stuck with a bunch of product and no compensation.
SCAM 3 — MEDICAL BILLING:
“With your investment, we'll teach you how to launch your own medical billing business.” The problem is, many doctors do their own billing, and if they do use a third party, it's mostly from a well-established firm, not someone working from home.
Get Answers in Writing
Legitimate work-at-home program sponsors should tell you — in writing — what’s involved in the program they’re selling. Here are some questions to ask:
- What tasks will I have to perform? (Ask the program sponsor to list every step of the job.)
- Will I be paid a salary or will I be paid on commission?
- What is the basis for your claims about my likely earnings? Do you survey everyone who purchased the program? What documents can you show me to prove your claims are true before I give you any money?
- Who will pay me?
- When will I get my first paycheck?
Also, do a quick search of the company through the Better Business Bureau to make sure it's legit.
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Where to Complain
If you've spent money and time on a work-at-home program and now believe the program may not be legitimate, contact the company and ask for a refund. Tell company representatives you plan to notify law enforcement officials about your experience. If you can’t resolve the dispute with the company, file a complaint with these organizations:
- The Federal Trade Commission at ftc.gov/complaint or 1-877-FTC-HELP (1-877-382-4357).
- The Attorney General’s office in your state or the state where the company is located. Visit naag.org; the office will be able to tell you whether you’re protected by any state law that may regulate work-at-home programs.
- Your local consumer protection offices.
- Your local Better Business Bureau at bbb.org.
- Your local postmaster. The U.S. Postal Service investigates fraudulent mail practices. Visit postalinspectors.uspis.gov.
- The advertising manager of the publication that ran the ad. The manager may be interested to learn about the problems you’ve had with the company.
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