Doc Jim's Help Page!

Get Rich Quick Schemes and Scams

"Don't bother reading the fine print."

Consumer Fraud Tips
Page 10

James Charles Bouffard, Psy.D, Ph.D


Business Opportunity Scams


    Keeping track of the latest trends, con artists are ever watchful for new ways to make illegal money. In the last five decades the trend has been the home-based business, giving swindlers another open field.

    Flexible working hours and independent living — just two of the benefits of a home business — appeal to us all. The grifter is aware of this appeal and soon moves in for the kill.


    Today we not only find magazines and assorted periodicals, but television infomercials and the Internet littered with business opportunity advertisements. Some of the ads are legitimate, true, but they are far outnumbered by scams. And, sad to say, it is almost impossible to separate the true business opportunity ad from its false counterpart. Therefore, at the risk of sounding redundant, the rule is: "If it sounds too good to be true, it probably is."


    Two major types stand in the forefront of business opportunity scams. The first — collectively called phony franchise opportunities — comprise bogus charity programs to fake vending machine routes. The second encompasses the well-known work-at-home schemes.

    Both types, though varying in many respects, have one thing in common. Each depends on an idividuals lack of knowledge to the realities of working a home business. Their advertisements plug easy money, no experience, low or no start-up costs, flexible hours and the ever-popular "no boss" myth. They fail to mention, of course, the steadfast demands placed on running a home business. Nor do they point out the unlikelihood that one might become an an overnight home-based millionaire.

    Phony franchise opportunities require recruitment usually through seminars set up by advertisment (print media or email), infomercials, or direct mail packages sent to opportunity seekers. Victims are lured by promises of rewarding self-employment, guaranteed locations, protected territories, and easy work. Depending on the scam, they shell out anywhere from $50, $100 (for mail order and Internet "low-cost" scams) to $5000 or more (requested at seminars) for a complete start-up kit, which may include equipment, sample products, and step-by-step instructions.

    The con artist makes the whole package sound too good to resist. Overwhelmed by the possibilities, the victim fails to notice the loose language of the contract he signs, or the amount of work he must perform in order to make a profit.

    Before he knows it he's working over a 40-hour week, with an income nowhere near what the program claimed. The equipment, locations, protected territories, and products used to entice him are either substandard or nonexistent. Angrily, he demands return of his original investment. But here's the rub: Unless the victim has followed the signed contract to the letter (which includes its fine print) the con can declare it null and void, "legally" refusing to return the money.


    Work-at home scams commonly call for opportunity seekers to pay money to make money.

    The most popular work-at-home scams are:

  • Envelope stuffing.

  • Assembly work.

  • Sewing and crafts.

  • Information selling.

    Remember: No one should have to pay money (even as a "registration fee") to start a new job.

    Unfortunately, many people respond to the work-at-home's psychological lure of unlimited earnings, easy money, and flexible hours. The cons reason, and sometimes rightfully so, that the language used in their ads will appeal to their victims' greed and desire for easy money.


    Test your business opportunity savvy on this exciting deal:

Sundaestation
                                                           


Red Line

    (Note: Print this page if you wish to save it for your records.)

Previous  Next

or

Home

© 1999-2010
Dr. James Charles Bouffard
Doc Jim's Help Page!
Lynn Paulo Foundation
All Rights Reserved.