Is That Work-At-Home Job Going To Pay?
There are all kinds of home-based businesses, including ones that are set up to fail. Maybe you want something flexible to balance responsibilities like caring for kids or family members. Or maybe you haven’t been able to find a job, or you need extra income. Whatever your reason, know this: many work-at-home ads that promise you can earn a great living, even in your spare time, are scams. They won’t deliver on the claims they make.
If you’re looking to work at home — whether it’s an internet business, mystery shopping job, the processing of rebates or medical claims, or something else — do your homework first and recognize the warning signs.
Common Work-at-Home Scams
- Internet businesses. You’re told you can earn thousands of dollars a month starting your own internet business. The company says that no experience is necessary because they have experts to coach you. You’re pressured to pay for the opportunity right away. Once you pay, the company says you won’t succeed unless you pay for more pricey services. Many people who pay for these “businesses” are left with a lot of debt and not much else.
- Envelope stuffing. Promoters advertise that for a “small” fee, they’ll tell you how to earn big money stuffing envelopes at home. After paying the fee, you find out there is no work. Instead, you’ll receive a letter telling you to get other people to buy the same envelope-stuffing opportunity or some other product. You’ll earn money only if those people respond the same way you did. But the promoters rarely pay.
- Mystery shopping. Ads for mystery shoppers say they want people who are willing to shop at certain stores or dine at certain restaurants, and then report on their experience in exchange for money. To begin, you must register and pay a fee. Often, your first job is to evaluate the effectiveness of a money transfer service. You will unknowingly be given a fake check, told to deposit it in your bank account, withdraw the same amount in cash, and send it by wire transfer to a third party. The check will bounce and you will be on the hook for the full amount.
- Rebate processing. An ad or email claims you can earn big money by helping to process rebates. The fee for training, certification, or registration is nothing compared to what you’ll supposedly earn processing rebates from home. What you get is poorly written and useless training material. There are no rebates to process and few people ever make any money.
- Medical billing. The ads promise a substantial income for full- or part-time work processing medical claims electronically - no experience needed. When you call the toll-free number, a sales representative tells you doctors are eager for help. In exchange for your investment of hundreds or thousands of dollars, the representative says you’ll be provided everything needed to launch your business. Few customers who pay for medical billing opportunities ever find clients or make money.
