Work At Home > Scams to Avoid

USPS Employment Schemes Page

Scams 101 from 
Friends in Business

BizyMom's Scam Page

Avoiding Home 
Business Scams

Better Business Bureau
on WAH Scams

FTC Says: Beware of "Flopportunities"

Ten Signs of a Scam

List of Employers
Medical Billing
Stuffing Envelopes
Assemble Crafts at Home
MLM's
Other Scams

Q. This company wants $5.00 for a list of employers that will hire me. They say it's for administrative costs, which sounds reasonable to me. Should I send them the money?

A. In a word, NO!! This is one of the oldest scams on the books and one that the FTC warns about in their publications. Finding a legitimate telecommuting or work at home job is just like finding a legitimate "real-world" job - you should never ever have to pay for it. These "lists" (also known as manuals) are typically a compilation of employers in your area who may or may not have hired telecommuters in the past 10 years. Many of them are out of business. The list and accompanying materials give you "advice" on how to send out resumes to these companies stating your desire to work at home and your skills. Think about it - you're paying them $5 (or $10 or $20) to look in the phone book and tell you to send out a resume to a company. 

Also, beware of "refund guarantees." They are suspiciously worded and 90% of the time false. back to the top

Q. I got an e-mail about something called "Medical Billing." The company is offering a money-back guarantee on their software program, which they say will teach me how to become a medical biller. They also say it is a high-paying job - is this true?

A. While it is true that a career as a medical biller can be rewarding financially and professionally, as well as offering the opportunity to work at home, what these companies don't tell you is that Medical Billing is a difficult and expensive field to get into if you don't have previous experience. There are no software programs that will teach you everything about medical billing (although some community colleges do offer courses), nor will they offer you the experience that most doctors, leery of fraud charges and Medicare billing errors, require of their billers. back to the top

What the US Federal Trade Commission says about Medical Billing

The Truth About Medical Billing from the Electronic Medical Billing Network

Q. What are these "Make Money Stuffing Envelopes" ads I keep seeing? Can you really make money doing this?

A. Again, the short version is NO. This is another "oldie but goodie" scam, one that has been around longer than the Internet thanks to the Classified Ads section of your local newspaper. Essentially, these "programs" will send you information on how to place an ad to get others to ask you about envelope stuffing. Not only is this dishonest, it's also illegal, according to the United States Postal Service. For more information on specific companies as well as other envelope stuffing scams, check out the Envelope Stuffing Scheme Site.  

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Q. I'm pretty good at crafts and I'm thinking about responding to one of those "Assemble Crafts at Home" ads I keep seeing in my favorite magazine. Is there anything I should watch out for?

A. Yes: your checkbook. Yet another classic "work at home" scam, these companies send you a "kit" containing all you will need to assemble their products. Trouble is, your final assembled product will never be good enough to pass inspection, no matter how much experience you have or time you put into it. They will send the finished product back to you with instructions to re-do. One article in Family Circle magazine, where the author investigated these types of schemes, estimated the total per-hour wage of "at home assembly" schemes to be roughly 50 cents an hour! Your time and experience is worth far more than that.  back to the top

Q. What about MLM's (Multi-Level Marketing programs)?

A. MLM's aren't for everyone. They require a great deal of patience and tenacity, as well as good salesmanship and dedication. If you have these qualities, and you believe in the product or program - go for it! Be sure to investigate the program thoroughly and solicit advice from others. If those in the program have everything positive to say but refuse to give you a straight answer about the drawbacks, be wary. 

For more information about MLM's, check out your state's attorney general's office, The Bottom Line About MLM's from the FTC and Cagey's MLM site, which offers information and feedback about different MLM programs.  back to the top

Other Scams

This page isn't long enough to list all of the scams out there, but here are some links that might help you on your search. Just remember - you will NEVER have to pay for a legitimate job. You may have to pay for a start-up kit if you're involved in a sales or party program, you may have to purchase special software if you're in a highly specialized field like software writing, you may even have to pay for courses at your local college to learn a field. But any potential job opportunity that requires you to lay out money to get "more information" or a "special information packet" is a scam. back to the top

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