The FTC recently announced a crackdown on scammers trying to take advantage of consumers through schemes such as fraudulent business opportunities, get rich quick schemes, fake debt-reduction plans, and fictitious government grants.
As part of their effort to educate consumers about fraudulent business opportunities, the FTC has produced this video warning.
Signs of a Scammer
We all want to work at home in our fuzzy bunny slippers. After all, that’s why we’re here, right? But we need to be rigorous in our investigation of potential business opportunities. Here are a couple of warning signs you should watch for.
Scammers tend to make big promises. You’ll make big profits in a short amount of time, working only 37 minutes per day from your new beach house. We’ve all seen the infomercials with the talking fox, haven’t we? The old adage, “If it seems too good to be true, it probably is,” is worth remembering here. If you hear these big promises from people who are trying to sell you something, ask yourself if it’s just too good to be true.
Legitimate businesses can back up their claims with proof, and the greater the risk, the more substantial that proof needs to be. A $10 investment requires a lot less proof than a $1,000 investment.
Hard Sell Threats
Scammers trying to sell you on a new business opportunity can’t afford to have you looking too hard at the proof of their claims. In order to distract you from the flimsy “evidence” they provide, they hit you with high pressure sales tactics. If you’re being pressured to buy right now because “space is limited” or because “territories are going fast,” you should take a step back and do some more investigating.
Beware of the scammer who won’t allow you time to sleep on it. They want you to make a decision right now, often telling you that they’re only authorized to offer this “low price” if you sign a contract today. A legitimate business opportunity will still be around tomorrow, so take your time and make sure you’re not being duped.
Real Work At Home Opportunities
Don’t let the scammers scare you away from your goal of working at home, though. There are plenty of legitimate work at home opportunities out there.
A good place to start looking for home business opportunities are the member only posts from this site: Top 10 Internet Home Business Ideas You Can Start and Run in Your Underwear and the follow-up post 10 More Work at Home Internet Business Ideas You Can Do in Your Fuzzy Bunny Slippers. Check them out now!
While it’s great that the Federal Government is cracking down on these types of scams, remember that you can’t count on them to catch every charlatan out there. Do you research, practice due diligence, and don’t be afraid to walk away from a deal that just seems too good to be true.