Tips to avoid Work from Home Scams

Be aware of legal requirements
To do some types of work, such as medical billing, you may need a license or certificate because some types of work cannot be done at home under federal law.

Be cautious about emails offering work-at-home opportunities
Many unsolicited emails are fraudulent.

Be patient
If you're looking to start a home-based business, or looking for telecommuting work you can do at home, you may have a considerable search ahead of you. There are a lot of people in the same boat, many of whom are falling prey to scams every day. Don't let scammers use high-pressure tactics to sucker you in. If you're given a time-limited offer, there's usually a reason why -- scammers know that pressure brings in people! Even if you're in dire straits, it pays to be patient... so that you don't lose money to schemes that never materialize.

Be wary of offers to send you an "advance" on your "pay"
Some con artists use this ploy to build trust and get money from your bank. They send you a check for part of your first month's "pay." You deposit it, and the checks have bounced.

Beware of the old "envelope stuffing" scheme
In this classic scam, instead of getting materials to send out on behalf of a company, you get instructions to place an ad like the one you saw, asking people to send you money for information about working at home. This is an illegal pyramid scheme because there is no real product or service being offered. You won't get rich, and you could be prosecuted for fraud.

Beware of vagueness and incredible claims
Companies that don't state their names, costs, or other important information in their ads usually have a good reason to do so -- they're scammers. As well, be wary of claims that you can make up to $1,000 a week; doing just a few hours' worth of unskilled work. Don't be blinded by greed.

Do your own research about work-at-home opportunities
You may discover the companies hire only local people and that there is nothing available in your area.

Don't believe that you can make big profits easily
Operating a home-based business is just like any other business - it requires hard work, skill, good products or services, and time to make a profit.

Find out if there is really a market for your work
Claims that there are customers for work such as medical billing and craft making may not be true. If the company says it has customers waiting, ask who they are and contact them to confirm. You can also ask likely customers in your area (such as doctors for medical billing services) if they actually employ people to do that work from home.

Get all the details before you pay
A legitimate company will be happy to give you information about exactly what you will be doing and for whom.

Get references for other people who are doing the work
Ask them if the company kept its promises.

Know the refund policy
If you have to buy equipment or supplies, ask whether and under what circumstances you can return them for a refund.

Know who you're dealing with
The Company may not be offering to employ you directly, only to sell you training and materials and to find customers for your work.

Never reply to spam
Fraudulent offers for home-based businesses or work-at-home opportunities almost always arrive as spam. The better it sounds, the less likely that it's legitimate. Scammers aren't planning to deliver anyway, so what does it matter to them what they promise? Delete and move on.

Use your credit card to make purchases
This sounds counter-intuitive, but if you are going to buy a starter kit or make some investment relating to a home-based business, purchase using your credit card. That way, if you don't receive the items, or if things go wrong, you can dispute the charges with your credit card company. If you're unsure how to do this, speak to your credit card company before you make the purchase.