It’s easy for self-employed professionals to feel completely alone, because often they are. Many of those who work from home work alone, with no supervisor to provide feedback or a co-worker to give a needed pat on the back. A large number of the self-employed rely upon themselves alone to find and complete jobs, stay on schedule, pay income and self-employment taxes…to complete all the tasks that go into being a successful independent contractor. But when it comes to work at home scams, you are not alone.
Empty Promises
The Federal Trade Commission, FTC, takes self-employment scams seriously. The governmental branch is currently working on refunding $730,000 to persons who lost money through a work at home scam perpetrated on sites such as jobformoms.com, moneyfromhome.com and moneyfromhome.net. Around 75,000 people feel victim to the scam, sending upwards of $90 each to a Texas-based company called Abili-Staff Ltd.
The refunding effort is part of the FTC’s Operation Empty Promises campaign, which is aimed at bringing companies that falsely promise self-employment and work at home opportunities to a reckoning. The campaign is a joint effort that works in conjunction with the U.S. Postal Inspection Service and law enforcement agencies in several U.S. states.
“The victims of these frauds are our neighbors, people who are trying to make an honest living,” said FTC Bureau of Consumer Protection director David C. Vladeck in a press conference.
New Rules
In the future, it should be easier than ever to spot (and avoid) self-employment scams. The FTC is implementing new rules as of March 2012 that will make more so-called employers accountable for the claims they make.
Companies that offer work at home job opportunities (like assembly and envelope-stuffing) will be most affected by the new rule, which states that they must actually back up their financial claims. If claims are made about likely potential earnings of employees (“Make thousands of dollars a day!”), the company making those claims actually has to provide data to support them. If the company, or key persons within it, have been involved in specific legal actions they must disclose it. Also, under the new rules these companies must disclose cancellation and refund policies. Under the new rules, misrepresentation and omission are prohibited.
Safer Working at Home
Some companies that run scams on job-seeking professionals are being held accountable for their actions, which is encouraging, but it’s not enough to depend upon the government to deal with the problem. The self-employed have to learn how to take action (or sometimes, to avoid it) and do their part of limit the number of successful work at home scams.
Research companies before doing any work with them, and think twice before giving them any money. Most legitimate employers will never ask for money for any reason whatsoever. Search self-employment forums to find information about companies and employers you are considering, and check trusted sites (like the BBB and the FTC) to look for complaints and legal actions which may involve the company. Taking a little extra time can help you avoid becoming a scam victim, and that leaves a lot more time and energy for the real, legitimate work at home opportunities.
KC Morgan - KC Morgan has been the featured writer in Self-Employment since 2006, using personal experience to create guides to being self-employed.
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