Beware of Home - Based Business Scams
Some of you might be considering starting a home-based business so you can earn an income while staying home with your children. There are many wonderful opportunities and success stories associated with home-based businesses, but there are also many scams and fraudulent schemes out there, as well.
Here is a short checklist of what you might want to think about before starting a home-based business.
Envelope stuffing
This is a very common home business you see advertised in many places. And it sounds very simple. All you have to do is stuff and mail envelopes. Then sit back and collect your money. And you have to pay anything for materials or to join. And you’ll get mailing labels too. Problems with is home business include: Names and address being rejected, which means you won’t collect money on them The company saying you didn’t stuff them in time. In other words, you took too long to stuff and mail them, so they won’t pay. So while there are some legitimate offers out there, there are plenty of others that will try to scam you in the ways I’ve described. So I say to be leery of envelope stuffing!
Craft Assembly
This scam encourages you to assemble toys, dolls, or other craft projects at home with the promise of high per-piece rates. All you have to do is pay a fee up-front for the starter kit… which includes instructions and parts. Sounds good? Well, once you finish assembling your first batch of crafts, you’ll be told by the company that they “don’t meet our specifications.” In fact, even if you were a robot and did it perfectly, it would be impossible for you to meet their specifications.
Overpayment scams - these start with a usually very generous payment offer from a customer. They send you a fake cheque or money order for more than the agreed price to secure the booking or cover ‘fees’ or ‘extra shipping costs’. They then ask you to refund the excess amount, usually through an online banking transfer or a wire transfer (such as Western Union). However, once you refund the money their payment bounces. You lose your money, plus any product you may have sent to them.
Two holdover schemes we have seen over the years involve envelope stuffing and assembly or craftwork. Typically, when someone responds to an ad for envelope stuffing, all they receive for their investment are instructions to place a similar ad. Assembly and craft work are also frequently advertised opportunities. These often require an investment in equipment or supplies. When the investor completes the work, they often find that they are expected to sell the finished goods on their own or they are told that the workmanship is not “up to standard.” Unfortunately, no work is ever “up to standard.”
