Home Business Starter Kit

Scam check

If you have to pay to get hired, stop.

Work-from-home offers are a favorite place for scams to hide. Most of them come in one of a few shapes, and once you know the shapes, they're much easier to spot.

Walk away if you see these

  • You pay to start. For a starter kit, training, a certificate, software or a spot on a list. A job shouldn't cost you anything to get.
  • The money comes from recruiting. If you'd earn more for signing people up than for selling to real customers, the recruiting is the real product.
  • They send you a check first. You're told to buy equipment or pass some of the money on. The check turns out to be fake, the bank takes the money back, and whatever you sent is gone.
  • The job is reshipping packages. You receive boxes at home and mail them on. The goods are often bought with stolen cards, and it's your address on every box.
  • They want your bank login. Or they ask you to open accounts or move money for them. That can make you part of the fraud.
  • Income is guaranteed. Or it's shown off with screenshots, cars and vacations. Nobody can promise what you'll earn.
  • You have to decide today. Real work is still there tomorrow, after you've looked into it.

Ask these out loud

  1. Who pays me, and for what?
  2. What do I pay, and when?
  3. What happens if I stop?

If any answer is vague, or changes when you ask twice, that's your answer.

The seven-day rule

In the US, the Federal Trade Commission's Business Opportunity Rule covers many people who sell business opportunities, like vending routes and work-at-home programs. They generally have to give you a one-page disclosure document at least seven days before you sign anything or pay. It says whether they make earnings claims, lists certain lawsuits, explains any cancellation or refund policy, and gives you references.

No document? Ask why before you go any further.

One gap to know about: multi-level marketing companies generally aren't covered by that rule, so you may never see the document. Look hard at how much of the money comes from selling to real customers.

If it already happened

  • Call your bank right away if you sent money or shared account details. The sooner you call, the better the chance of stopping it.
  • Report it to the Federal Trade Commission at ReportFraud.ftc.gov.
  • Report it to your state attorney general's office.
  • Report the ad or profile to the site or app where you found it.

Getting caught by one of these isn't a character flaw. They're built by people who do this all day.