Work at Home Scams | Work at Home Scam

Work at Home Scams: Beware of the "Top 3"

As you read this it’s happening to someone. Someone is about to become a victim of a work at home scam. According to AARP.org, con artists pitching work-at-home schemes rake in $427 billion dollars a year. Consumers lose amounts ranging from 10-50,000 dollars by buying into work at home scams. How do con artists get away with it and how can you protect yourself?

1) Assembly Work at Home Scam

Typical ad- "Assembly work at home! Easy money assembling craft items. No experience necessary."

This crafty scam takes advantage of people who like to do crafts and decorations. You are asked to invest hundreds of dollars for a kit of raw materials. Companies ask you to make anything from baby booties to jewelry. However, once you get the kit you realize that the final product is impossible to make. You also only get paid if you make a specified amount. If you manage to make your quota the con artists then tell you your final products are substandard and refuse to pay for them.

Tip: If arts and crafts are your thing, buy your own products and set up a small business doing it.

2) Envelope Stuffing

Typical Ad -- "$200 Weekly Guaranteed! Work two hours daily at home stuffing envelopes."

This work at home scam is a sophisticated mass mailing scheme that eliminates any profit potential. When you see this ad you are asked to send money for more information. The details are then just an explanation of how to get to take advantage of others. You are told to place the same kind of ad the advertiser ran in the first place. Not only will you spend hundreds of dollars on advertising, if you follow partake in this scam, you could be prosecuted for mail fraud. The postal inspector's office considers envelope stuffing an elaborate, illegal chain letter.

Tip: Ignore all envelop stuffing emails. No company is ever going to send email requests for people to stuff envelop. Companies have machines to do this or on hand staff.
3) Chain Letters

Typical Ad -- "Make copies of this letter and send them to people whose names we will provide. All you have to do is send us ten dollars for our mailing list and labels. Look at the chart below and see how you will automatically receive thousands in cash return!!!"

This work at home scam is decades old but has taken a modern twist with the help of the internet. Typically, chain letters include names and addresses of several individuals whom you may or may not know. You are instructed to send a certain amount of money--usually $10--to the person at the top of the list, and then eliminate that name and add yours to the bottom. You are then instructed to mail copies of the letter to a few more individuals who will hopefully repeat the entire process. The letter promises that if they follow the same procedure, your name will gradually move to the top of the list and you'll receive money. The only people who benefit from chain letters are the mysterious few at the top of the chain who constantly change names, addresses, and post office boxes. Besides wasting time chain letters are also illegal if they request money or other item of value.

Tip: You’re never going to make hundreds of dollars sending letters to people. Delete the email to save yourself the time and trouble of possibly being prosecuted.

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