Top 5 Work at Home Scams
April 19, 2009 by MOYMJennifer
Filed under Blogs
The offers cram your in box “Work from Home: Rebate Processors Needed” or “Earn $50,000+ Processing Medical Claims from Home.” The offers sound tempting, maybe you’re tired of the 9 to 5 rat race or you’ve been unemployed for 6 months and getting desperate. Maybe you even posted a resume on Monster.com or CareerBuilder.com and had a work at home opportunity sent to you. But are they legit? No, chances are they are a scam whether the offer comes as spam in your inbox or comes from a career site like HotJobs.com. Here is our list of Top 5 work at home scams to avoid.
Medical Billing
One of the most overrun industry with scammers, these ads tout “no experience necessary” and invite you to call a toll free number. Once you call, a sales representative gives you a pitch about area doctors needing help with electronic claims processing, and how you can make this into a lucrative business from the comfort of your own home. All you have to do is fork over hundreds and sometimes thousands of dollars for a software package to process claims, training manuals and list of potential clients. The truth is most doctors’ offices process claims in house or use established firms, not individuals working from home.
Rebate Processing
Everyone has sent in a few rebates at some point in their life so maybe rebate processing could be a legitimate way to make money from home. Wrong. The fact is only a few companies in the US offer legit rebate processing jobs but you must live in a certain mile radius to their offices because you have to pick up and drop off your work. Meanwhile the scams require you to send anywhere from $40 to $500 to receive a starter kit and contact info on over 11,000 companies including names like Hewlett Package and Home Depot that need help processing rebates. What you actually receive is instructions on how to make money posting blogs, sending out emails and paying for ads on the Internet at an additional cost to you in order to sell various products. The rebate part? If a buyer actually buys something based on your emails, blogs or ads you get to pay the buyer a rebate, out of your own sales commission.
Mystery Shopping
There are many reputable mystery shopping companies out there. These companies hire shoppers to shop retail outlets, grocery stores and restaurants and report back their findings. You are never asked to pay any money up front and are reimbursed for your time and money spent after your report has been submitted and reviewed. Mystery shopping wire transfer services (like Western Union) are always a scam. You are sent a hefty check and told you can keep a portion of it for your commission. After depositing the check in your bank account, and wiring the money to your employer, your bank notifies you the check is fraudulent and your money is long gone leaving you responsible to cover the counterfeit check.
Envelope Stuffing
Envelope stuffing is a classic work at home scam. Who wouldn’t want to make a couple extra hundred dollars a week stuffing envelopes while they relax and watch TV? Usually there is a small start up fee of $49.95 or so for a starter kit and instructions. When your kit arrives it contains instructions on how to advertise the same scam to others in local newspapers, magazines, emails or blogs. The only way you make money is if people respond to your ad.
Assembly or Craft Work
These scams require you to invest hundreds sometimes thousands of dollars in equipment and supplies. The company requires you to buy everything from them since they want you using only “the best.” So after investing your own money in say a sewing machine or sign-making machine and spending hours making plastic signs, aprons or baby clothes, you send in your work expecting payment quickly. A few days later you receive a letter saying your work “doesn’t meet our quality standards” and you are out time, money and the crafts you created. The only way to make money now is to find your own customers.
Related posts:
If it sounds too good to be true, it probably is. I’m amazed how many people fall for the scams mentioned in this article. A little fact checking before agreeing to do anything and a little common sense will save you time and money in the long run.
I have mystery shopped for grocery stores and resturant chains for 5 years now. There are many companies that are legit and can be found on sites like http://www.jobslinger.com. While you won’t get rich it is a great way to offset the rising cost of groceries or have a nice dinner out for free. Just remember you will never be asked to send money or paid up front for work. You have to apply, be selected, do a shop, submit the review and a receipt and then you will get paid.