Home Business Information

Homeworking Scams are easy and fun to spot - providing you haven't fallen for one.

A quick check through any home business news group, or the classifieds of most newspapers reveals many "Make Money Fast" (MMF) schemes. Whatever the 'product' these schemes are mainly based on a chain letter. Statistically speaking, it is impossible to reach the levels and amount of money promised as this would mean the number of people that would have to be involved would be as much as the entire world's population! The United States Postal Inspection Service states the legalities (or rather illegalities) and quite simply a "chain letter is simply a bad investment".

For everything you ever wanted to know about Pyramid Schemes and Multi-level Marketing Companies see www.ag.state.mn.us/consumer/fraud/bottomline/pyramid.htm. For a positive view see our page in defence of legal Multi-Level Marketing schemes.

The UK's ASA (Advertising Standards Authority) has worked with the Office of Fair Trading to update their Homeworking Schemes Action Pack (more about this to be posted soon). Meanwhile see Employment & Homework Schemes at the ASA. Visit the ASA site at www.asa.org.uk who you can also complain to about misleading advertising for homeworking schemes.

It is not surprising to know that according to the U.S. Postal Inspection Service, "In practically all businesses, envelope stuffing has become a highly mechanized operation using sophisticated mass mailing techniques and equipment which eliminates any profit potential for an individual doing this type of work at home. The Inspection Service knows of no work-at-home promotion that ever produces income as alleged."

If you haven't already, check out the Soapbox for more about Internet Scams.

Bogus Job Offers

Although there are genuine jobs working at home, many are bogus. You should not have to pay to get work. Never send money in advance to people or companies who claim they can offer you work at home. These con tricks may start with an advert in a newspaper or a shop window, or on a local bus, or with a leaflet through your door.

Examples:

Adverts about addressing and stuffing envelopes: these are generally followed by a demand for a registration fee. All you get for your money is advice to place adverts like the one you saw.

There is no real job.

Just a scam to con you out of the registration fee.

Adverts asking for money for home assembly kits: these scams promise pay for making up the goods or your money back. You won't get your money back.

You will be told that the goods are not up to standard or given some other excuse.

You will not get paid.

The people behind the scheme never intended to pay you from the start.

Medical Claims Processors Wanted!!

Have you seen those ads? A reader from the States wrote to tell us about a common scam taking place:

In a nutshell, basically, legislation was instituted here mandating that all doctors in the U.S. submit their claims electronically (as of February 2001). Interesting, because 50% of all claims are now submitted electronically via clearing houses. Seems to save the physicians considerable amount of money, allow their nurses/workers to do other tasks.

However, these claims NEED to be processed by someone. (Now, I attempted to contact one of these "outfits." However, before I did, I did extensive research and discovered on a consumer watch webpage that this business was a SCAM). Back to the story: the claims need to be processed electronically, thus requiring medical claims processing software! Yes, you guessed it. The software companies (I suspect some unsavory outfits) put together a group of these packets, along with 500,000 names of doctors, etc. and are selling these software packages, along with lists, etc., how to become a medical claims processor, etc. to the public.

Sounds good? Well, try establishing yourself with some physicians after you've purchased the software and sent out hundreds of letters explaining that you can process claims electronically (this package provides you with technical "training").

The consumer watchdog said that this is a SCAM and not to bite. One can spend thousands of dollars (or pounds) attempting to establish a business. I don't know how these people get around it, but -- legally -- they do. So, be wary of "medical claims processors" software. You can learn this, but can you work at it?

It seems that there are large companies already doing this. Incidentally, the software sells in the range of $325 U.S. up to $500.00 U.S. or more!!! Too bad we've lost our integrity and honesty -- some of us.