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Nearly everyday I receive an e-mail from someone telling me that they were
scammed, or asking me if such and such company is a scam. Because of the
amount of e-mail I received, I decided to write this article. Even though
this article was written with a slant toward business opportunities, it
applies to any type of Internet or mail order offer. If you heed the advice
in this article, you will greatly reduce your chances of becoming a scam
victim yourself.
(article continued below ...)
First of all, when checking out business opportunities, make sure the
website you’re visiting or the materials you’re reading contain all
three of the following:
1. A real persons name (not just a company or business name)
2. A verifiable telephone number
3. A street address (not just a P.O. Box)
If all three of the above are not present, walk away from the offer.
Also, don’t consider any business opportunity that doesn’t offer at
least a thirty-day money back guarantee. Anything less than that is
unacceptable.
Listed below are the ten most common scams:
1. Business Opportunities Scams:
These offers make it sound like it's
easy to start a business that will earn you piles of cash with little or no
effort on your part; usually accompanied by pictures or banners of mansions,
fancy cars and piles of money.
2. Chain
Letters: In this classic scam, you're asked to send a small
amount of money (usually $5.00) to each of several names on a list, and then
forward the letter including your name at the top of the list, via bulk
e-mail. Many of these letters claim to be legal. They even include a section
of the U.S. Postal Code on illegal schemes. Don't be fooled. They are not
legal. And if you participate, not only will you be breaking the law, you'll
lose your money as well.
3.
Work-At-Home-Schemes: The most common work-at-home scam promises that
you'll earn money for stuffing envelopes. For example, you're promised
you'll earn $2.00 for every envelope you stuff. After you pay a registration
fee, of course. In reality, after you pay the fee, you're instructed to
place classified ads and send out the same envelope-stuffing ad to others.
The only money you'll earn will come from other people who fall for the scam
and pay to register. Another variation of this scam is home assembly or
craftwork.
(Editor's Note: read the article
"Work-at-Home
Scams")
4. Bulk E-mail Scams: These solicitations offer to sell you bulk e-mail
addresses (spam software) or services to send spam on your behalf. Example:
“Reach 15 million websites, $44.95"! The software is usually of poor
quality. It's spam and a scam. Don't do it.
5. Cable De-scrambler kits: These scams offer kits or information on how
to receive cable transmissions without paying any subscription fees. There
are two major problems with these offers:
- The kits and information don't
work.
- Cable television theft is illegal, and you stand an excellent chance
of paying a huge fine and/or going to jail!
6. Guaranteed Loans or Credit Scams: This scam comes in a variety of
flavors: home equity loans that don't require equity in your home, personal
loans regardless of credit history, etc. After you pay the application fees,
you receive a letter saying that your loan request was denied. Usually, you
never here from these companies again.
7. Credit Repair
Scams: These scams promise to erase accurate, negative
information from your credit file so that you can qualify for loans,
mortgages, unsecured credit cards, etc. It doesn't work. Not only that. If
you follow their advice and lie on loan or credit applications, misrepresent
your social security number, or get an Employer Identification Number from
the Internal Revenue Service under false pretenses, you will be committing
fraud and violating federal laws. Another variation of this scam is the
promise of a brand new credit file. Don't do it.
8. Vacation or Prize Award Scams: In these scams you receive notification
congratulating you because you've won a fabulous vacation, a car or some
other prize award. All you have to do to collect your prize is pay a small
fee (usually several hundred dollars). In return, what you end up getting is
a toy car, (I kid you not) or a vacation certificate to the Bahamas or some
other exotic vacation spot. It's really a lousy deal. You have to pay for
your own airfare, and the accommodations that they arrange are usually in
rundown hotels. Let the buyer beware!
9. Investment Schemes: These scams offer get-rich-quick schemes to make
unlimited profits on the world currency market. There are many variations of
this scam, but they all promise the same thing: Wealth without work!
10. Multi-level Marketing (MLM) or Network Marketing Scams: I know I'm
going to ruffle a few feathers with this one, so let me just say right now
that not all MLM or network marketing companies are scams. Obviously, there
are some good, reputable companies out there. However, there are so many bad
ones that I'm compelled to include the entire industry on this list. Before
getting involved with any MLM or network marketing company, investigate,
investigate and then investigate some more. Don't get caught up in the hype.
And here's a fact no MLM or network marketing company will ever tell
you--not even the legitimate ones: Unless you have outstanding sales ability
and/or people skills, it is extremely difficult to make any money in MLM or
network marketing.
Before purchasing any business opportunity, you should always check first
to see if the company has had any complaints lodged against it. The
following websites publish complaints and/or scams:
http://www.scamwatch.com
http://www.worldwidescam.com
http://www.sohojobs.org
http://www.bbb.org
If you do get scammed, report it to the aforementioned websites
immediately. You probably won’t be able to recover your money. Few people
ever do. But at least by reporting the crime and making it public record,
you make it harder for that company to scam anyone else.
In closing, always carefully investigate any business opportunity, and
remember: If it sounds too good to be true, it probably is!
About the author:
Dave Turner is a writer and entrepreneur with over twenty years of small
business experience. Questions? Comments? Don’t get scammed! Internet business expert will help you find a
legitimate home business! For the exciting details, visit my website:
http://www.freebizadvice.com
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