By Amber Sheppard, Esq. | Legally reviewed by Amber Sheppard, Esq. | Last reviewed May 16, 2024
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If it sounds too good to be true, it usually is. Not all work-at-home opportunities deliver on their promise of full-time work offering lots of money. Many ads on job boards, Linkedin, or job search groups on social media omit all the costs you must pay.
Countless work-at-home schemes and remote jobs require you to spend your own money to place advertisements or buy supplies and equipment you need to do the job. Consumers deceived by these ads for work-at-home jobs have lost thousands of dollars.
This article discusses how to spot a work-from-home scam and laws that can provide recourse for those who have been duped.
Before agreeing to an online job advertisement, research the company. Here are a few places to do that:
Check these organizations in your state and where the company is located. These organizations can tell you whether the business has received complaints about the work-at-home program.
Companies can settle complaints, change their names, or move out of state to avoid detection, so don't let a lack of complaints end your research on the company.
Below we discuss several types of offers you might see online that are classic work-at-home schemes.
One common home-based business is a medical billing center. Entrepreneurs will see these ads in newspapers, television, and online. The advertiser states doctors want to hire outside workers to handle their billing services. They promise high wages for working full-time or part-time. They may assure you that you don't need experience and that they will provide clients.
A medical billing business opportunity sounds like an ideal work-from-home job but is often a scam. Several large and well-established firms get most of the clients, so the likelihood a doctor wants to use you outside of the large companies is slim. You'll have to sell your services, and they won't send you any clients.
Another common scammer business idea is envelope stuffing. Promoters scour the online marketplace and post job scams. They claim that if you pay them a fee, they'll tell you to make money by envelope stuffing.
However, the promoter never follows through with that promise. Instead, you get a letter asking you to post the same online ad or send it to people you know.
These scams require you to invest hundreds of dollars in equipment or supplies upfront. After you've purchased the supplies and performed the work, fraudulent operators don't pay you. Often, companies refuse to pay for the completed work by claiming the work doesn't meet their standards.
Work-at-home programs should have details in writing. Below are common questions you should ask during:
An online job interviewer or recruiter should answer these questions for you. Then you can decide if the job is worth taking.
You do have recourse to file grievances if you were a victim of a work-at-home scheme. Here are some things you can do:
If none of these organizations can help you, you may want to schedule an appointment with an attorney to discuss a lawsuit against the company.
If an illegal work-from-home scheme has scammed you or had a negative impact on your small business owner, consider contacting a business law attorney. An attorney can guide you through the complaint process and put their expertise to work for you.
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