Last Updated on November 5, 2023 by coffeepo

How to Avoid Scams?

Since the pandemic hit, the number of people looking for work-from-home jobs has skyrocketed. Much to our dismay, the number of scammers in the remote job market has also increased.

Nevertheless, there is a way to spot scammers easily. A Flexjob survey showed that 19% of the workforce have experienced a job scam, yet just 15% of them were able to identify the warning signs.

This article will equip you with everything you need to know to spot scammers when looking for work-from-home jobs online, so you can avoid ending up as the victim of a scam AND find the right (and legitimate!) WFH job for you.

12 red flags to look out for when identifying work-from-home scams

When you know what to look out for, you’ll get better at recognizing fake job offers right off the bat. The Federal Trade Commission has a list of job posting “red flags” that you should pay attention to:

1. The job is too good to be true (e.g., getting full-time pay for part-time work).
2. They ask for money up-front, and guarantee you a greater return on your investment.
3. There isn’t much information about the company, and they don’t have a professional website.
4. Nobody can confirm the legitimacy of the job offer or company itself.
5. There are warnings or bad reviews about them online. 
6. They use generic email accounts (e.g., Gmail, Yahoo, etc.), instead of business accounts (e.g. @companyname.com).
7. Their job description lacks detail and emphasizes “quick and easy hiring”.
8. There is no proper interview conducted via phone call, video call, or an in-person meeting.
9. They manipulate your emotions to try to convince you to act on their offer.
10. They communicate poorly and are suspiciously eager to hire.
11. They ask you to recruit other people to work for them, too.
12. They require you to pay for the job training you’ll receive.

6 common work-from-home scams

Scammers advertise their job offers the same way legitimate employers do. They’re also paying for ads, listing on job hunting websites, and advertising on social media, newspapers, TV, and radio. Their offers look promising, but all they want is your money and/or personal information.

Here are some common techniques that work-from-home scammers use:

1. Envelope stuffing scams

Envelope stuffing, or any other “home assembly” jobs for products, are pretty much always scams. Usually, people who respond to these job postings are asked to pay a small fee to receive the materials needed for the task. However, the “job opportunity” often disappears once the payment is confirmed.

The scammer might even ask you to place an ad for them to trick more people into joining, in exchange for an incentive! It’s basically a pyramid scheme that inevitably collapses when new recruits dry out. Plus, in some cases, posting an ad for a scam can make you criminally liable.

2. Pyramid schemes

The term “pyramid scheme” refers to a business model where the earnings from lower levels of the organization are funneled to the top. These “earnings” often come in the form of recruitment fees or mandatory fees for “training, computer services, product inventory, and initial materials” that new members pay for.

Pyramid schemes are not only illegal but completely unsustainable and will collapse inevitably. Their success depends largely on the ability to consistently recruit new investors. However, there are only so many people in a given community for them to pull in. 

The only ones who benefit from pyramid companies—albeit through dishonest ways—are top-level members, or people who bought into the scheme early.

3. Mystery shopping scams

While mystery shopping opportunities aren’t always scams, many of them are.

To evaluate the quality of their service with the least bias possible, retail companies sometimes hire mystery shoppers to be unbiased evaluators. The mystery shopper is usually reimbursed for any purchases and will be allowed to keep the items. Shoppers might even receive a small payment on top for their services. This kind of arrangement may not be a scam.

However, some mystery shopping scams promote shopping opportunities as a gateway to amazing job positions with well-known companies. Scammers will set up a website for people to register and pay fees (e.g., for the certification program, company directories, or slot reservation). Of course, once you pay the fee, it’ll be impossible to get your money back, or contact your “recruiters”.

4. Money Transfer “Mystery Shoppers”

Another version of this scam has mystery shoppers “evaluate” a money transfer service by depositing a check into a personal bank account, withdrawing the amount in cash, and wiring it to a third party account. However, the check is fake, and you’ll be stuck with the responsibility of paying the bank when the check inevitably bounces. 

5. Product testing sites that require upfront payment

While there are legitimate product testing sites where you can test actual products for real companies, scams are unfortunately prominent in this industry.

If a product testing site promises a free iPhone or other expensive items in exchange for an upfront payment, run away, fast! Respond only to the opportunities that pay you to test products, not the other way around. Average rates for remote product testing range between $10-30 an hour.

6. Surveys sites that require payment to join

Some sites will pay you a small amount of money for every survey that you complete, but be wary if you’re asked to pay a subscription fee.

Legitimate surveys sites never require you to pay a fee. Unfortunately, many impersonate legitimate companies, use phishing surveys, or send fake emails—making it difficult to tell the real sites from the scams.  What’s worse, fraudulent survey sites might retrieve your personal and financial information for malicious purposes. 

Always remember: real surveys will never ask for money or sensitive information (like usernames, social security numbers, credit card details, and personal passwords). 

What happens if you get scammed?

If you fall victim to a work-from-home scam, it might be difficult to get your money back. But for extreme cases (e.g. a stolen identity), you should exhaust all your options to regain control of your private information.

Here are some steps you can take:

• File a complaint to the Federal Trade Commission via their website or hotline at 877-382-4357.
• Report the scam to your state attorney general. Better Business Bureau can confirm if the scam you’re reporting has received other similar complaints about a particular work-from-home program.
• For stolen identities, immediately contact the US government to recover your information.
• Identity thefts can be reported via IdentityTheft.gov, which is run by the Federal Trade Commission (they’ll give you a free recovery plan with next steps) or their hotline: 1-877-FTC-HELP.

Conclusion

Real opportunities to make money remotely are abundant—you just need to be careful when searching for them. 

Hopefully, this article has given you the knowledge to spot fraudulent work-from-home scams, protect your finances, and explore the legitimate job options available to you. 

Just exercise a little caution when you’re searching for work-from-home jobs online, and you’ll be remote working in no time!

Interested in knowing what legitimate work-from-home jobs are available for you? Check out these guides on the 29 Best Work-from-Home Jobs and 28 Profitable Online Jobs to get you started.