Some fraudulent home-based-business opportunities appear again and again. While the particulars of the scams may vary, the basic structure remains: Buyers eager to have a home-based business pay up front for the products, leads, or training, but the promised profits never materialize. Here are 10 of the most common home-based-business scams going on right now
ATM Machines
Sellers promise profits from operating ATM machines, but only after buyers pay thousands of dollars for the machines. They're often promised good locations, but if the cash machines are delivered at all, the locations don't generate the income promised
Typing At home
Typing at home after doing lots of work of typing online so called data entry provider give very little or in many case they pay nothing at all as they have agreed to give upon completion of the data entry work Only work will well famed but there are many good data entry service provider
as well as with some unscrupulous one
Advance Fee Loan Scams.
Whether it's offered in a newspaper ad, on the Internet, or by email, this scam offers money at reasonable rates – if you send them money. They may say they need the money for insurance purposes or to get the money across the border. Whatever the reason, you'll never see that money again – or the money they were supposedly going to loan your business
Whether it's offered in a newspaper ad, on the Internet, or by email, this scam offers money at reasonable rates – if you send them money. They may say they need the money for insurance purposes or to get the money across the border. Whatever the reason, you'll never see that money again – or the money they were supposedly going to loan your business
Envelope stuffing
Envelope stuffing is a classic pyramid scheme. The seller charges the buyer a fee for the "opportunity" to send the ad for the scheme to more people. The only money changing hands is for recruiting new people into the scheme, not for any product or service. The last people to buy in will inevitably lose their money.
Home-Based Product Assembly
Ads promise good money to assemble jewelry, magnets, or other crafts at home, once the buyer pays a fee for the materials. If the materials arrive, they're in shoddy condition or impossible to assemble. Even though sellers promise to buy the finished product back from buyers, they tell victims that the products aren't assembled correctly or don't meet standards.
Internet Kiosks
As in other vending scams, sellers promise to place Internet terminals in good locations, but the leads turn out to be bogus. Often the kiosks are never delivered at all, and buyers find themselves out thousands of dollars
Internet Storefronts
For a fee, sellers offer to set up Internet storefronts or affiliate marketing Web sites that they say will bring profits without requiring any actual product to sell. The sham Web stores leave buyers burned.
Medical Billing
In medical billing and other computer-based work-at-home scams, the seller charges for training, software, and a list of purported leads, such as doctors who might use medical billing services. But most doctors who outsource their claims filings turn to established companies rather than people working at home, and physicians on the "list of leads" haven't expressed interest in billing services.
Multi-Level Marketing
Multi-level marketing models make each buyer an independent distributor of a product. While some legitimate companies like Avon (AVP) use this sales strategy, scammers use it to load up their "distributors" with low-quality products they can't sell. In some MLM businesses, the focus is on recruiting new members rather than selling products, turning them into little more than pyramid
Pay Phones
As odd as it may sound given the popularity of cell phones, pay-phone scams still make the FTC short list. Pay-phone scams charge thousands of dollars for supposedly profitable locations for public phones. If the phones are ever delivered, the locations aren't as profitable as promised.
As odd as it may sound given the popularity of cell phones, pay-phone scams still make the FTC short list. Pay-phone scams charge thousands of dollars for supposedly profitable locations for public phones. If the phones are ever delivered, the locations aren't as profitable as promised.
Rack Displays
Like other vending scams, rack displays promise buyers big returns from selling products like greeting cards or jewelry on racks displayed in favorable retail locations. Sellers promise that retailers are already on board, but the leads turn out to be false.
Vending Machines
Vending machines are among the most common business opportunity frauds. The seller charges thousands of dollars for machines, the inventory to fill them, and the promise of a prime location. But after paying fees to get started, buyers realize that the expected sales are far less than advertised
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