Don’t be a Victim of these Work at Home Scams

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With the unemployment rate at historically high levels, many Americans are turning to entrepreneurship as a means of replacing lost income but they’re also using their layoff as a reason to follow their dreams of owning their own business. For many, breaking out of their comfort zone of regular income from their employer is difficult but sometimes a layoff can be the best thing to propel us forward.

This rush to replace lost income not only has the attention of the government but sadly, it has sparked a new stock of scams designed to take advantage of peoples’ desperation. Here are a few of the business opportunities that you should avoid.

Envelope Stuffing

It’s been around for a long time but it has become bigger and more destructive over the past couple of years. The story sounds good. Companies don’t want to pay in house people to prepare mailings so they hire freelancers to do it but that’s where it ends. The advertisement asks that the person pay a fee for those materials but the materials never arrive. Instead they get information on how to place an ad in a local paper and make money perpetuating the fraud.

Medical Billing

There are legitimate work at home medical billers but in this case, the advertisement tells you that you make an unlimited amount of income after you pay for the training. The date you’re supposed to start is pushed back until you finally accept the fact that you’ve been conned.


All you have to do is purchase the parts to assemble a product and the company will buy the assembled product from you allowing you to make a profit. The company later claims that your workmanship is substandard and won’t buy the product from you.

The Pattern

In all of these instances, as well as other frauds, there is one key point that they have in common: You have to pay. Legitimate work at home jobs won’t make you pay for anything other than general office supplies that come with being a freelancer. One of the best ways to spot a con is to tell the person that you want to visit their offices and work out the details face to face. Also request a copy of their franchise disclosure documents which they are required by law to provide.

Bottom Line

Starting your own business in this environment is a great way to replace income but having a unique talent and going out and selling that talent to other businesses or individuals is the legitimate way to become a successful entrepreneur. Don’t fall for scams like these.