Classic work-at-home scams …
Are you on the lookout for work-at-home opportunities? The FTC has given us a "heads-up" on the following:
Medical billing. Ads for pre-packaged businesses - known as billing centers - are in newspapers, on television and on the Internet. If you respond, you'll get a sales pitch about the crisis in the health care system, due partly to the overwhelming task of processing paper claims. They will tell you that you can be part of the solution by providing electronic claim processing.
What they won't tell you is that they rarely provide experienced sales staff or contacts within the medical community. Their "package" that costs you several thousands of dollars gets you no closer to success than if you started on your own.
Few consumers who purchase a medical billing business opportunity are able to find clients, start a business and generate revenues - let alone recover their investment and earn a substantial income. Competition in the medical billing market is fierce and revolves around a number of large and well-established firms.
Envelope stuffing. Promoters usually advertise that, for a "small" fee, they will tell you how to earn money stuffing envelopes at home. Later - when it's too late - you find out that the promoter never had any employment to offer.
Instead, for your fee, you're likely to get a letter telling you to place the same "envelope-stuffing" ad in newspapers or magazines, or to send the ad to friends and relatives. The only way you'll earn money is if people respond to your work-at-home ad.
Assembly or craft work. These programs often require you to invest hundreds of dollars in equipment or supplies. Or they require you to spend many hours producing goods for a company that has promised to buy them. For example, you might have to buy a sewing or sign-making machine from the company, or materials to make items like aprons, baby shoes or plastic signs.
However, after you've purchased the supplies or equipment and performed the work, fraudulent operators don't pay you. In fact, many consumers have had companies refuse to pay for their work because it didn't meet "quality standards."
Unfortunately, no work is ever "up to standard," leaving workers with relatively expensive equipment and supplies - and no income. To sell their goods, these workers must find their own customers.
We’ll tell you about some ways to guard against scams next time…
Medical billing. Ads for pre-packaged businesses - known as billing centers - are in newspapers, on television and on the Internet. If you respond, you'll get a sales pitch about the crisis in the health care system, due partly to the overwhelming task of processing paper claims. They will tell you that you can be part of the solution by providing electronic claim processing.
What they won't tell you is that they rarely provide experienced sales staff or contacts within the medical community. Their "package" that costs you several thousands of dollars gets you no closer to success than if you started on your own.
Few consumers who purchase a medical billing business opportunity are able to find clients, start a business and generate revenues - let alone recover their investment and earn a substantial income. Competition in the medical billing market is fierce and revolves around a number of large and well-established firms.
Envelope stuffing. Promoters usually advertise that, for a "small" fee, they will tell you how to earn money stuffing envelopes at home. Later - when it's too late - you find out that the promoter never had any employment to offer.
Instead, for your fee, you're likely to get a letter telling you to place the same "envelope-stuffing" ad in newspapers or magazines, or to send the ad to friends and relatives. The only way you'll earn money is if people respond to your work-at-home ad.
Assembly or craft work. These programs often require you to invest hundreds of dollars in equipment or supplies. Or they require you to spend many hours producing goods for a company that has promised to buy them. For example, you might have to buy a sewing or sign-making machine from the company, or materials to make items like aprons, baby shoes or plastic signs.
However, after you've purchased the supplies or equipment and performed the work, fraudulent operators don't pay you. In fact, many consumers have had companies refuse to pay for their work because it didn't meet "quality standards."
Unfortunately, no work is ever "up to standard," leaving workers with relatively expensive equipment and supplies - and no income. To sell their goods, these workers must find their own customers.
We’ll tell you about some ways to guard against scams next time…
posted by John V at 9:27 AM
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