Articles - Feature: August 2010

(Copy and paste the text into your document)

Work-From-Home Scams: Don't take the bait

Double-digit unemployment rates have people looking for work wherever they can get it. That means it's the perfect time for scammers to cast their nets. One area in particular experiencing a spike in activity during these tough economic times is the work-from-home market.

While working from the comfort of your own home may sound tempting, there are a lot of potential scams that go hand-in-hand with this line of work. Remember: If something sounds too good to be true (e.g. no resume, no experience, work just 15 minutes a day), it probably is. Here are a few work-from-home jobs that may try and lure you in…

Stuffing Envelopes

The idea of making easy money with little effort is enough to get people interested in this potential scam. Advertisers typically claim that for a fee of around $20, they will tell you how to earn money by stuffing envelopes at home. The idea is that—for your money—you will receive a list of companies that need promotional materials, invoices and other items mailed out. The scam here is that this is often no real employment offer. Instead, you're likely to get a letter telling you to place the same "envelope stuffing" ad in newspapers or magazines. That way, the only way you will make money is if people respond to your work-from-home ad.

Data Entry

The ad might read, "Get paid to type. Earn $1,500-$2,000 a week." These messages flood e-mail inboxes. The offer is an opportunity to make an unlimited amount of income for typing. Like the envelope stuffing scam, you are asked to send in a fee of around $20 for a starter kit. In most cases, the package you receive comes via e-mail. After downloading the document, you are instructed to take the same ad you just read, copy and paste it onto job boards, and wait for someone else to pay you $20 for it.

Medical Billing

Have you heard that there is a crisis in the healthcare system because there are not enough people to electronically process claims? If so, you may have been targeted by a scammer. The promoter may tell you that many doctors who process claims electronically want to outsource their billing, accounts receivable or electronic insurance claims processing to save money. They also may assure you that no experience is required.

Here's the scam: For your upfront investment of $2,000-$8,000, you are sent a brochure, application, sample CDs, a contract, disclosure document, and in some cases, testimonial letters, videocassettes/DVDs and reference lists. Then you are expected to turn around and sell the service of medical billing to prospective clients—not do medical billing yourself from home. It's a sales job—and an expensive one! Few consumers who make the investment in this type of business are able to find clients, start a business and generate revenues—let alone recover their initial investment. In reality, the medical billing market is highly competitive and revolves around a number of large and well-established firms—not people working from home!

While working from home may help you save money on things like gas, clothing and child care—or may be tempting to seniors looking to supplement retirement income—you might end up losing more in the end than you had in the beginning. Before going down this path, research the company with the N.C. Attorney General's Office by calling 877.5.NO.SCAM, or the Better Business Bureau (check www.bbb.org for regional contact information)—not only where you live, but also where the company is located. These organizations can tell you about any complaints about the work-from-home opportunity that interests you.