Fraud 101: Working From Home

Ads for jobs you can do from home make big promises: set your own hours and make tons of money. The reality doesn't usually live up to the hype, of course, as many of these business opportunities are only an opportunity for someone else to scam you.

Here are some of the pitches you might hear – and why they'll end up costing you:

• Before you can make the big bucks starting an internet business, you have to pay for your training. But once that's over, there are advanced courses and other services you really won't succeed without. The result? You never stop paying and never start earning.
• With a small shipping and handling fee, you can make hundreds from internet searches! The question of how you can earn any money doing that when Google makes pennies on the average search is moot: it was all just a ploy to get your account information.
• You could always stuff envelopes from home... if it wasn't a pyramid scheme. After you pay the small registration fee, you'll be told to recruit some new co-workers – and you'll only make money if those people also get suckered in.
• Sometimes there really is work to be done. But after you've bought the raw materials and equipment and spent many hours laboring on your first batch of fidget spinners, the company will refuse to pay you because your work "isn't up to par." (Spoiler: It never will be.)

You may notice the common thread here: a business asks you to pay for the privilege of working for them. Fortunately, there are great ways to protect yourself from these scams. Any company pushing a business opportunity must, upon request, provide you with a document disclosing any current lawsuits against them, their refund or cancellation policy and a list of references. Additionally, if they make any claims about how much you can earn, they must provide a second document with statistics to back up those claims.

Before you pay or sign anything, ask for and review these documents. It's illegal for the company to say anything that contradicts them, so any discrepancies are a major sign that something isn't right. Research the company online, ask questions until you're satisfied and walk away if things don't add up. If you suspect a scam or have been scammed, report it to the Federal Trade Commission.