Work from Home Scams

Cyberspace has become rife with e-mails and websites offering "get-rich-quick" and "work-at-home" employment opportunities. Like any other scam, "work-at-home" fraud only exists because there are Internet users still falling for the same old tricks—users who are interested in getting something for nothing.

There is truly no substitute for due diligence when it comes to investigating supposed work-at-home programs. For example, employers generally do not require new employees to buy anything in order to start working for them. Any requirement to do so should raise some suspicion. Be aware of the warning signs.

Warning Signs:

  • The employer never offers a regular salary.
  • The employer promises huge earnings for part-time work.
  • The employer offers neither credentials, nor references for other employees you can contact.
  • The employer requires that you pay a sum of money before you are told how the company works.
  • The employer does not give refunds for merchandise you have to purchase in order to start working.
  • The employer wants to use your bank account, or open a bank account in your name.

Remember, if it seems too good to be true, it probably is.

Example Work at Home Scams

Money mule scam:

"Earn big money as a middle-man for Internet sales!"

With this scam, you are asked to act as the middle-man for an on-line business, usually selling computer hardware. Your bank account is used by your "company" to transfer money from the sale of equipment. Invariably, your "company" never actually sends any of the products it claims to sell, and you are left as the patsy—appearing as though you engaged in fraud.

Most of the scam artists behind the money mule scam are located outside of the United States. These scam artists often recruit new money mules by posting advertisements on legitimate job recruitment websites on the Internet. Money mule positions are often advertised as "US representative", "shipping manager", "financial manager" or "sales manager."

Keep in mind that by becoming a money mule, you may face a police investigation when people who have been defrauded out of their money begin to file complaints against you.

Work at home assembly scam:

"Assembly work at home! Earn big money making craft items. No experience required."

In this scam, an employer requires you to invest hundreds, maybe thousands of dollars buying materials and instructions to build toys, clothes, and other trinkets. The employer will tell you that a company has promised to pay top dollar for your craft items. Ultimately, no one ever buys the merchandise that you've built and you are left unable to recoup the money you invested in the first place.

Envelope stuffing scam:

"Earn $400 a week working two hours daily stuffing envelopes."

After answering an envelope stuffing ad, you will likely be asked to spend hundreds of dollars buying promotional materials and instructions for starting your business. Usually, this business involves recruiting other people to do envelope stuffing also. Each variation on this type of scam requires the victim to spend large amounts of money on advertising and promotional materials.