Avoid Internet Business scams

National fraud information center, the oldest nonprofit consumer
organization in the United States, to fight the growing menace of
telemarketing fraud by improving prevention and enforcement. They
publish some useful information for internet money makers and work at
home business owners. You must consider this information, before start
your online business.

• 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 job.

• 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.

• 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.

• Find out if there is really a market for your business.
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 job at home.

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

• Be aware of legal requirements.
To do some types of business, such as medical billing, you may need a
license or certificate. Check with your state attorney general's
office. Ask your local zoning board if there are any restrictions on
operating a business from your residence. Some types of work cannot be
done at home under federal law. Look for the nearest U.S. Department
of Labor in the government listings of your phone book.

• 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.

• 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.

• 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 bank tells you the check has cleared because the
normal time has passed to be notified that checks have bounced. Then
the crook contacts you to say that you were mistakenly paid the wrong
amount or that you need to return a portion of the payment for some
other reason. After you send the money back, the check that you
deposited finally bounces because it turned out to be an elaborate
fake. Now the crooks have your payment, and you're left owing your
bank the amount that you withdrew.

• Do your own research.
The resources that may be available in your local library provide good
advice and lists of legitimate companies that hire people to doing job
for them. You may discover that these companies hire only local people
and that there is nothing available in your area.