5 Work From Home Scams to Avoid

Online, February 21, 2011 (Newswire.com) - I hate to start out on a negative note, but there's nothing worse than getting started trying to make some extra money for your family and finding out you've been scammed! I don't want you to lose your motivation by making the wrong move when you're getting started. Read on to learn 5 common scams you need to watch out for.

-- Morgan

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Work from home scammers have mastered manipulation techniques and know exactly what to say to victims to get in their pockets - and deep in their pockets at that. A lousy job market creates a ripe pool of targets for scams, since so many people are struggling to earn an honest buck.

Don't get caught in the traps of work from home scams designed to take your money and leave you to blame in the eyes of the law. Know how to spot the opportunities that aren't real, starting with these five frauds.

1. Package Forwarding

This con hurts victims twice over. Its artists will cheat targets out of their own money, and then bring the police to the door to question a suspect, not help a victim.

A thief will steal someone's credit card (i.e. identity theft victim) and use it to purchase goods, but he knows that he can't ship them to his own address without attracting attention. So he sets up phony ads on Craigslist and other online boards promising payments for forwarding packages, often under the guise of helping a neighbor who's traveling or an overstocked business.

The scam victims then receive the package, along with instructions on where to send the package next. After re-mailing the stolen goods - with their own money - they'll supposedly get a check for their services. Sometimes payment comes, and sometimes it doesn't. In either event, it's usually the police who show up wanting to know why the victim received stolen goods at their own address. Try explaining that one.

2. Email Forwarding

This hustle puts a modern spin on the old envelope-stuffing scheme, which surprisingly still finds victims today.

An unsuspecting job seeker gets an invitation to make money by forwarding emails on behalf of a company. On the surface, it might look like a marketing job or entry-level position in online media. You'd think it's easy to see through a scam like this from the beginning, but for someone desperate for work, it's easy to miss some warning signs.

The "company" informs the victims that to get started, they just needs to submit a fee for materials or software they'll need. Once the cheats have the cash however, they'll either never send the materials, or even worse, the "material" is just a letter that tells the victim how to run the same scam on other unsuspecting people.

3. Work in Crafts

This hoax is another one that's been around so long it's a wonder that it has any victims left. But it does, and they're losing thousands of dollars to it.

Instigators begin by advertising online or in print media, announcing a search for workers who can assemble crafts or other items for them. They promise payment on a per-piece basis, saying that they only accept high quality goods, and that workers will have to purchase top-notch sewing machines and other equipment from them. The investment is worth it, they say, because the piecemeal work they do will quickly have the equipment paying for itself.

Of course, these specific machines can only be bought from the craft company, and soon the checks and credit card orders start rolling in. After targets have spent thousands of dollars, the "company" simply closes up, the scammers pocket the cash, and the victims never hear another word.

4. Incoming Jobs

Especially in this market, the "You've got a job!" scam is gaining ground. In this one, unsuspecting victims receive an email with the good news that a job offer awaits them at a certain website that has more information. Following the link, they see instructions to enter their mailing address and other personal information for permission to see if jobs are still available. Surprise! They still qualify, but only two jobs remain, and they need to quickly claim one before another applicant else gets it.

To claim the role, they'll need to provide more personal information, including valid credit card data. "Why do I need to provide a potential employer with my credit card number?" a desperate job seeker may ask. And the cons have an answer: For job training of course! This particular (mandatory) training will cost, say, $200, and the job starts after successful completion of training. In the end, there's no training, no job, and the victim gave up $200 - and a credit card number. This can potentially open you up to identity theft and separate credit card fraud and scams.

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Remember the old adage, if it sounds too good to be true, it probably is. Seriously, how often do you get an unsolicited email telling you that you have a job offer?

-- Morgan

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5. Data Entry

While there are plenty of legitimate data entry jobs, there are also a lot of sham employers who exist only to bilk work-from-homers out of thousands of dollars. They'll post a job for data processors who can work from home. When an applicant contacts them, they put them through an interview and make a job offer.

But wait, all employees must use a specific software to work on their system. The applicant doesn't have it (no one does) because it's only made by the company, who then sells it for thousands of dollars - yes, really. Applicants are happy enough to have the chance to work from home, so they bite on the offer. As with similar scams, the job seeker has just spent thousands, and, not surprisingly, after the check clears, the data entry job never materializes.

Final Word

Con artists spend hours trying to figure out how to cheat people out of their money, and they know that by appealing to the human tendency to get something for free - or in this case, earn a lot of money by not doing much - they'll always have victims. There are valid ways to make money from home, but most of them will require lots of hard work. You simply won't be able to make $10,000 per week doing them. Don't give up your search, but be smart about it. Work on making yourself more marketable in the job market and know where to look for a job.

Source: Money Crashers

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You've worked hard for your money (whether you have a lot or a little of it!) Please don't let these scumbags take it from you. We're going to be talking about legitimate ways to make extra money in the upcoming days and weeks, so stay tuned!

Let me know what your thoughts are and please take a minute to Like my page on Facebook. I'd appreciate your help in spreading the word.

Think wealthy thoughts,

Morgan Kimble

MorgansMoneyMatters.com