Wednesday, April 8, 2009

Home Based Business Scams

Identifying Real Home Based Business Scams

Finding a home based business can be scary when you think of the numbers of home based business scams that exist. The fear can be reduced when you lean some of the red flags that will identify the majority of scams. Although these red flags may not pertain to every conceivable scam, you will greatly reduce your potential for becoming a victim if you keep your eyes open and are not too quick to make a decision. You can also follow the saying: "If it sounds too good to be true it probably is."

One of the key elements you will find with problem opportunities is their request for a fee to perform the work. One of the most common home based business scams and likely the oldest is the one about stuffing envelopes at home. This scam requires the applicant to pay for the cost of materials including the postage to return the completed envelopes to the company or to the addressees. The advertisements then claim you will be reimbursed for your expenses in addition to a fee for each envelope you stuff. If you do manage to be paid for your work it is likely to be such a small amount that it really won't be worth your time.

Another one of the popular home business schemes is that of becoming a domestic business contact for an overseas company. They want you to be a middle person and accept funds coming in from their banks. This scam should automatically spell out trouble-if the company is running a legitimate operation they would be able to enlist the services of a US attorney or accountant to handle these transactions. Some of them have the audacity to ask you to provide the banking information and want you to use your own personal account. What they are really trying to do in these home based business scams is to either get access to your personal funds and/or find a legitimate place to hide the money they launder.

Work from home scams are usually very easy to detect but those that do not exhibit the red flags may be easier to detect. One of the first things you want to remember is never pay for any business opportunity. Certainly in some MLM networks you must pay for a demonstration or promotion kit, but you want to make sure you understand that up front. MLM networks fall into a different category, but you still must make sure you research the company they represent. Never hand over money just to join an MLM network or to engage in any business opportunity-those are definite red flags and should be viewed as home based business scams.

Don't let a fear prevent you from indulging in one of the many business opportunities that are available. If you are careful and look for the red flags you will not have to fear falling victim to any of the home based business scams. If you're in doubt follow your instincts and move to something else.

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