How to avoid business opportunity frauds and work-at-home scams

Business opportunity frauds and work-at-home scams have some common characteristics:

-They promise lots of money for little time and work.

-They often use the reputability of classified ads or TV commercials to make their offers seem respectable.

-They tout their employees' or investors' personal freedom: Set your own hours, work from home, be your own boss.

-They often have what sound like real executives and good references, because they sometimes hire actors to pose as company officials, satisfied customers or references.

To identify swindlers, first get the numbers: If claims about income amounts are made, the company must give the number and percentage of previous purchasers who achieved the earnings. If the business opportunity costs more than $500, the Federal Trade Commission requires the company to provide financial-disclosure documents.

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