Work-from-home scams: Common schemes- and how to spot and stop them.
Many people are looking to increase their income by working from home. Remote jobs are real and growing, but so are fake ones. The Federal Trade Commission (FTC) reports that job-related scams are among the fastest-rising categories of fraud. Anyone who is exploring these opportunities needs to do their due diligence to avoid the scams out there. Learn more below on what to look for and how to identify fraud and scams when seeking a work from home job.
Examples of illegal potions or scams
A classic fake remote job starts with urgency and flattery . The “employer” hires you fast, asks you to buy equipment or software, or mails you a check to deposit and “send back” part of the funds. The check later bounces and you’re on the hook. Legit employers don’t make you pay to work, and “deposit-then-refund” is a hallmark of the fake-check scam. Some of the scams may also start by asking a person to call a phone number for information on the job , and it may be a 1-900 number. In today's day and age, when almost everything can be put online, any company asking a potential employee to call a toll number should be questioned. After calling the number, the company may ask the applicant to pay up front costs for more information on the work from home job. Or they may ask for your credit car or personal information over the phone. These type of jobs are almost always illegitimate work from home opportunities presented by companies often looking to steal a person's identity if not even worse. Another common pitch is the reshipping or “quality control” role . You’re told to receive and forward packages or funds. In reality, you may be laundering stolen goods or money as a “money mule.” That’s illegal and can get you into serious trouble - report it immediately. Fake check or equipment purchase scams are more "Traditional" but still people fall into them. Scammers send a “cleared” check, then ask you to buy equipment or gift cards with the money. Banks later reverse the check - and you pay the full amount. The FTC continues to warn: legitimate employers never expect you to pay upfront with their funds. “Mystery shopper” jobs are also disproportionately abused . Some firms do hire shoppers, but scammers copy the idea and send counterfeit checks or charge fees for certifications or job lists. If you’re asked to pay to get a shopper job, or any job, it’s a scam. We do have a list of real mystery shopper companies to try if wanted - these are not scams. Reshipping or package processing jobs are a work from home scam, and this particular one tends to be illegal. While each company that is “hiring” for these positions may have their own spin on it, in general it will involve a task such as receiving a package from a person or businesses and then reshipping it to a new address. It is typically sent oversees. The job may sound enticing as not only will it pay a salary, but the employer will also pay for the postage cost. The person may think all they need to do is the legwork in receiving the package and then forwarding it on. However there is a catch to this. Normally the reshipping job involves stolen merchandise or even worse, things like illegal prescription drugs. Or maybe the package was paid for using a stolen credit card. It does not really matter, as in almost all instances these reshipping work from home jobs are not only scams, but they are illegal and the employees can actually go to jail. A twist is the “task” or “rating” gig that feels like a mobile game: you’re paid pennies to click, rate, or “boost” until a larger payout is “unlocked,” but only after you send fees to “verify” your account. Losses from these task scams helped drive the big jump in recent job-scam reports. An ad such as “Make X dollars per day just by using your computer” may sound enticing, but it is almost always a lie. Same thing goes for envelope stuffing jobs and the like. Just surfing the internet or creating a website will not result in a person easily making tens, hundreds, or even thousands of dollars. Anything that sounds too good to be true is most likely a scam. Gamified Task Scams (“a.k.a. Click, Get Paid”) are becoming more common with tens of thousands now reported yearly. These begin innocently: a text or WhatsApp offers you a remote gig - check an app or boost content. Early “earnings” materialize, building trust. Then you’re asked to deposit money or crypto to unlock higher payouts. One Georgia woman lost $30,000 this way, transferring small amounts via PayPal, wires, and crypto. Anyone offered a multi-level marketing job opportunity needs to take a hard look at them. Contact the BBB or state regulators for information on them. Many of the multi-level marketing work at home jobs may be scams. They almost always ask for membership fees and want people to pay money up front to buy marketing materials. They often ask for other expenses to be paid. Many of the MLM jobs are in fact pyramid type schemes. Anyone that does not know what this is should research some of the financial scams in recent memory, such as the infamous Bernie Madoff. A multi-level marketing scam basically takes money from one person and gives to another, and that money is then used to pay off another individual. The scam goes on until no one else joins, and then the entire pyramid falls apart. The end result is many people lose a substantial amount of money from these work at home MLM jobs. Read more on how to identify a MLM scam . Another scam is often any type of assembly type job, data entry or even some envelope stuffing jobs. They tend to be illegitimate if they ask for money to be spent up front . If the company says you can work from home but you need to buy equipment or products first, this will be risky and is a red flag. Often the employer will take the money from the consumer, promise them they can make it back, and then the employee never sees a dime back. This is another fairly common scam.
Resources to confirm if a job is a scam
The above list are just a few examples of the more common work from home scam jobs. But the fact is there are many more , and these companies are always coming up with new offerings. If there is ever any question as to an offer, that is telling. It may be worthwhile to follow a first instinct. If you’re asked to pay first, whether for training, equipment, certification, or access to opportunities, that’s a red flag. There are places to turn to for information or to report an illegal or scam work at home opportunity. Or people can validate a potential opportunity. Call the
Federal Trade Commission
at 1-877-382-4357 or website:
https://www.ftc.gov/about-ftc/contact Another government agency to turn to for help in verifying or researching a work at home scam is your state Attorney General Office. Or contact the Better Business Bureau (BBB). They can also be used to research an job opportunity as well as file a complaint and the website is: https://www.bbb.org/ . It is always strongly recommended to read the fine print of any agreement and use other resources to look for scams. People can check with the agencies above or even research forums to see what other people are saying about the opportunity. Unfortunately there are illegitimate companies and individuals that are just flat out looking to rip people off. Any job, especially those that allow the flexibility to work from home, are challenging to find. If it sounds too good to be true, then that is a “red flag” and should be looked at skeptically.
What to do if you suspect a scam
First, stop all communication and do not send any money or personal information. Then report the incident directly to the proper authorities. If you have lost money and fell for one, and want to sue, learn about free legal aid for debt needs that can be used.
Federal Trade Commission (FTC)
– https://reportfraud.ftc.gov/ is the central portal for filing scam reports. You can also call 1-877-382-4357.
FBI Internet Crime Complaint Center (IC3)
– If the scam involved cryptocurrency, wire transfers, or other online elements, file a report at www.ic3.gov .
- S. Postal Inspection Service
– If mailed checks, forwarded packages, or reshipping was part of the scam, report it at www.uspis.gov/report or call 1-877-876-2455.
Identity Theft Recovery
– If you gave away a Social Security number, bank details, or other sensitive information, start a personalized recovery plan at www.IdentityTheft.gov. .