Business Opportunity Scams Can Take You And Your Money For A Ride!

Business opportunity scams run the gambit of chain letters, computer prediction software, work from home scams and pyramid schemes.

One huge part of this scam is dependent on people making an up-front payment and recruiting other people for the same scam (pyramid scheme).

There are scams in business opportunities popping up all over, especially in this economy.

See business identity theft to learn more.

Jobs are far and few between in most states and people are literally looking for a way to make money to support their families or make a second income.

The scams offer a way to make ‘instant riches’, or make ‘easy money’.

• There are telephone schemes, vending machine scams, amusement games and display racks for items such as CD ROM computer software and greeting cards.

• You will be told your display rack of vending machines will be placed in a high traffic area.

• The promoter is obliged to provide the racks or machines, finding the location for the machines, provide replacements and relocate them if necessary.

• You’re obliged to restock, clean and collect the money from the machines or racks.

Most of the business opportunity scams have been know to be promoted through small ads that appear in the magazines, or newspapers classified section or trade shows.

Many of these scams now are not on a face-to-face basis, but promoted through extremely slick telemarketing.

Years ago I worked for a business owner that owned several businesses, one of which was a vending machine company.

The vending machines were all in large, legitimate, well known businesses, not in out of the way places where the chance of them making much money was nil.

Spotting Business Opportunity Scams

See a “red flag” if you become aware of the appearance of any of the following used in ads, newspapers, magazines, or online.

• If claims are made that seem unsubstantiated or crazy concerning earning potential and claims that include concepts that are “proven”.

• Ads in the classified section that urge the person to call an “800” number.

• The email does not specifically have your name on it.

• Be leery if the ad doesn’t give an actual street address, but only gives a P.O. Box number.

• Any promise you will be given exclusive territories.

• Any claims that suggest no experience will be necessary.

• Victims are pressured to turn over their money because of high-pressure telemarketing sales techniques.

• Many of the vending scams will tell you they will offer assistance from a professional locator and promise good locations.

• Purposefully don’t provide a current list of business opportunity owners in your region, but tout the company’s hand-picked references.

• Do not provide a future investor with documents of complete disclosure concerning lawsuit history, audited financial statements, pre-sale disclosure in regard to their experience and substantiation for representations about their earnings.

Business Opportunity Scams – How To Protect Yourself

• Always ask for any offer in writing. Never agree to an offer over the phone.

• Never pay an up-front fee.

• Never give anyone your personal information that you don’t trust and know.

• Be thorough in checking out any business opportunity, whether you found the offer in a magazine, newspaper, TV or an online proposition.

• One scam that has been going around for years, especially regarding the nigerian scams,want you to transfer money for someone else. This is considered money laundering and is a criminal offense.

Business opportunity scams are BIG business. Please pay heed to the tips and how to protect you from these scams and save yourself from being ripped off of a lot of money and exposing yourself to identity theft.

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