FTC stops a work-from-home scam business
- Kim Thompson: Better Business Bureau
- June 18, 2018
- 1264
We have all been tempted at some point by the idea of starting our own business and raking in the cash. What if you were offered a training program that promised you could earn thousands of dollars a month all from home? Unfortunately it is just another “too good to be true” scam. Promises like these are signs of an online business scam.
The FTC recently stopped a company that was promoting an online business opportunity that was really just a get-rich-quick scheme. The company claimed to have a “simple 21-step” system consumers could implement to make a substantial income “without creating [their] own products” and “without dealing with customers.” They promised that “average people with no prior experience online are depositing $1,250, $3,300 and even $5,500 commissions” into their bank accounts “on auto-pilot.”
Despite the promises, most people who paid for the online business program made little or no money, although the scam artists offering the “simple 21-step” opportunity allegedly collected more than $125 million from the customers they ripped off.
Watch for certain types of claims including guarantees that you can make a lot of money and promises that you can make money quickly and easily.
Be wary when high-pressure sales tactics are used, like “you’ll miss out if you don’t buy in now.”
Be cautious of “systems” that promise substantial, passive cash, especially when the system depends on selling others the same “opportunity.”
For great tips for starting a business and to learn more about your rights, visit the FTC’s website. Go to www.consumer.ftc.gov/features/feature-0019-business-opportunity-scams.
Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, report a scam with Scam Tracker, read tips, follow us on social media and more.