Because of the close interplay between taking advantage of your situation and using your emotions against you, work at home scams are a big business.
While there are no official totals available online, this Businessweek article from 2016 states that individual “losses can range from a couple hundred dollars … to $20,000 or more for people who get hooked on worthless business coaching or training materials that rely on pirated, decades-old books.”
And when you add up the hundreds of thousands who are scammed each year, this can translate into very big money.
So what do these scams look like? Let’s take a look at some of the most popular ones:
1. Envelope Stuffing Scam
Envelope stuffing has been around since the Depression and is perhaps the most popular work at home scam.
This involves posting flyers in public places (and now through online advertisements and Facebook) that claim to help people earn $1-2 for each envelope they stuff, with the potential of stuffing up to 1,000 per week.
They simply need to send a self-addressed stamped envelope and a $2 fee to a certain address.
But what they end up receiving is a copy of the flyer they were originally responding to, with instructions on how they can post the flyer and earn money the same way.
2. Product/Craft Assembly Scam
This scam involves assembling crafts or other types of products from your home but only after spending hundreds of dollars on equipment, supplies, and materials (often from the same company who’s promoting the work at home opportunity), not to mention the immense amount of time involved in actually making the crafts.
After submitting the finished product to the company who promised to buy them from you, you’ll likely be told that they aren’t correct, or you’ll receive some other excuse as to why they won’t pay you.
3. Email Processing Scam
This is a 21st-century version of envelope stuffing. Here, you’ll pay some fee (usually between $25 and $50) for information about how you can earn up to $X amount per email processed.
But for your money, you’ll simply receive some instructions on how to post ads like the one you responded to, and earn money for every person you sign up. Similar scams also involve “typing at home” and “forum spamming ” opportunities.
4. Medical Billing Scam
These scams will often promise to provide you with everything you need to start your own medical billing business, complete with a list of potential clients, product support, and medical billing software.
Of course, no experience is necessary. But after investing hundreds or thousands of dollars, you might find that the list you received is “out-of-date and include doctors who haven’t asked for billing services.
The software they send may not even work.” You’ll also quickly learn that competition within this industry is extremely fierce and that most doctors hire large firms to process their billing; not work-at-homers without any experience.
5. Mystery Shopping Scam
This scam involves promises of high-paying jobs by shopping at retailers, purchasing products, and then evaluating your overall experience.
Although mystery shopping is a legitimate part time gig for many individuals, these companies will often require that you pay a fee to become “certified,” or to receive a list of potential employers.
However, there is no such thing as a certification for mystery shopping, and a list of employers can be found online for free.
Now, you know to spot some of the most popular work from home scams. But what if you encounter a work at home advertisement that doesn’t necessarily fall in any of the above categories? How can you tell whether or not it’s a scam?
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