Business Scams
It is very difficult to recognize a business scam without performing an in depth investigation into the type business and its history.
See Below for the latest information on different types of business scams.
It is essential to realize that due diligence into the number of concepts involved, either in the performance or the various operations and requirements, of any business is critical.
I have realized that more often sales pitch advertisements don’t tell the whole truth about most business ventures.
99.9% of promotional material does not mention the more important features and issues of a business. For this reason, I believe more businesses fail than succeed.
As an example, you can recognize Computer Consulting as a legitimate type of business. Yet, the greater percentages of Consultants are not successful in their own company.
A most probable reason for failure may be due to certain business operations that were unknown to the Consultant prior to setting up their own company.
There are issues and circumstances that are of great magnitude to the success or failure in your own business.
You may be qualified in specific tasks; however, you may not be capable of successfully running all aspects for all business operations.
That is to be expected. One person cannot be all things to every subject and circumstance that will arise in your own business.
To be successful in the many hats that must be worn in your own business, you are required to learn as much about each department, task, issue and function that can exist.
I believe Business Ads and promotional material for Self-Employment use complete ‘Hype’ in the sales campaign.
An aspiring Entrepreneur sees, listens and concentrates on only the available information provided in the advertisement.
Important details about the business are intentionally avoided in any endorsement or sales materials.
Unfortunately, a potential business owner does not realize many of the questions to ask for the reason the issues unknown and are not mentioned in the subject matter provided.
The substance and content are basically a ‘Hard Sell’.
Could this be classified as ‘Scamming’ the hopeful Entrepreneur?
For discussion, I would say yes, it is somewhat misleading and deceptive in practice.
On the other hand, I might have to agree that it is the responsibility of the individual to understand and know as much as possible if their intention is to own a successful business.
Business Scams as of 11/29/2008
Mystery Shopping Scams
Mystery Shopping Check
Scam
There is a dangerous mystery shopping cashier’s check scam that continues to swindle and trick unsuspecting consumers, innocent mystery shoppers and credulous persons interested in secret investigative shopping and evaluating companies including their employees.
This is how it works:
A recipient receives a letter selecting them as a mystery shopper.
The letter includes a realistic cashier’s check for a few thousand dollars.
VERY IMPORTANT: Be sure to investigate any type of such letter if you should receive one.
The swindle fools a consumer by instructing the recipient to cash or deposit a certain amount of the check and then send the balance to another person or company.
Unfortunately, the check is not legitimate and it bounces. This leaves the recipient responsible for the entire amount of the check.
The fraudulent companies use countless web addresses of reputable companies who actually do hire contractor mystery shoppers for legitimate shops.
It is this misrepresentation that assists in misleading the consumer who has received the fraudulent letter and check.
In other instances, a person may have answered a classified ad for “mystery shoppers”. They receive a reply letter that includes a cashier’s check advising them to cash the check and to perform a ‘secret shop’ rating a
money gram service.
CAVEAT:
Any letter you receive in the mail similar to the above mentioned, more than likely is
fraudulent.
Consumers believe the letter to be a reply to the advertisement for mystery shoppers.
There usually will be a phone number listed on the reply letter or employment package that has a Canadian return address listed in Vancouver or other region.
Any phone number when called will usually answer with a recording saying, “The customer you are calling is currently unavailable.”
The fact that legitimate mystery shopper companies exist, does not mean that bogus mystery shopping companies are not present.
Fraudulent companies go to great lengths to swindle the unsuspecting consumer or mystery shopper applicant.
Fraudulent companies send out very convincing information.
For example, one type of letter and reply employment package will include strict instructions concerning firm business conduct and ethics.
The letter states a similar declaration as; “It is the policy of this company to promote a high standard of integrity by conducting our affairs in an honest and ethical manner. The mismanagement of entrusted allocated funds for specific assignments will result in immediate termination of employment and appropriate legal action.”
Many times such statement assertions will trick the naive believer.
Victims usually answering an ad appearing in the classified ads can trick the unsuspecting applicant who seeks employment.
They trust the advertisement because it is in the newspaper classifieds.
In the case of this particular type scam, the newspaper classifieds department made repeated attempts to contact those who had placed the ad, via the Canadian phone number provided.
Although they received a live response, the person whom they needed to speak was not available.
It is not always possible for newspapers and various style publications to know when ads are legitimate.
These type people and companies are difficult to effectively screen.
Consumers and mystery shoppers should not complete any money gram transactions in such instances as a reply from a classified advertisement.
It is very difficult to verify and confirm wire transfers sent.
The only requirement of the person on the receiving end is they present the appropriate password at the wire transfer.
Wire transfers provide virtual anonymity.
That is the fraudster’s objective; to be able to commit a crime in a way that cannot be traced directly to them.”
Here is a video link that may assist you:
You can find these and other stories by searching Google or other search engines for the terms.
Another prevalent scam is companies charging consumers to become a mystery shopper.
You may have paid someone to become a mystery shopper and then go to the site seeking a refund.
However, the fraudulent company misrepresented their affiliation or themselves as the legitimate mystery shopping company.
A victim was, erroneously, forward to the genuine URL website seeking a refund; however, the legitimate company is unable to refund any money to those who paid the fraudulent company a fee.
Naturally, the respectable company is very concerned that their business name is being used in disreputable scams.
Unfortunately, fraudulent companies of this type tend to disappear before anyone can find them and end their unscrupulous and illegal practices.
The reliable and legitimate company is in contact with police in various jurisdictions and provides all information obtained to capture the thieves.
If you are a victim of paying a company or individual to sign up for mystery shopping jobs, you can check your statement of payment for possible details on the company to whom you paid.
The company name and phone number is normally available on the statement.
There are too many mystery shopping ‘check cashing’ scams and other type swindles that prey upon mystery shoppers and those who wish to become secret shoppers. These type of disreputable businesses and people take advantage of the unsuspecting.
There are other types of mystery shopping scams that I will discuss in later article blogs. Please continue to visit my blog and benefit from the information I hope that will assist you.
Work-At-Home Opportunities
While there are legitimate and reliable work at home jobs and true self contracting opportunities available; there are still more that are not legitimate.
You more than likely have heard or read about the classic work-at-home opportunity Stuffing envelopes
Advertisements via direct mail and small newspaper classified ads headline luring opportunities by offering big dollars to consumers for folding letters and inserting them into envelopes at a usual pay of $1 or more per envelope.
They actually misrepresent the entire operation and process because the consumer interested in earning extra dollars is required to pay for your supplies and or training.
More times than not, the consumer is defrauded by receiving worthless instructions describing the process of recruiting others for envelope-stuffing jobs.
There is no justification for this type of a work-at-home operations as most bulk mailers use machines to stuff envelopes.
Another misrepresenting work-at-home scheme is Medical billing also known as insurance claims processing.
While it is true many who bill patients or other type medical services could work part-time from home, more often than not, these jobs are available as on-site positions versus at home jobs.
Don’t believe the company that is trying to convince you that you can make a great deal of money in a very short period of time processing medical and patient paperwork at home.
In reality the company wants to sell you their software and training program that will cost you hundreds of dollars.
In fact, medical offices more than likely process their own bills or have their claims outsourced to larger claims processing companies who hire the personnel to process the medical claims.
There are monthly updates and new changes on a regular basis for medical claims which requires governing rules and regulations. The average work-at-home individual will not have the means or large investment it requires to process medical claims.
Assembling crafts and furniture
There are many information processing companies that send out direct mail offering jobs at home to assembled parts via instructions, and then you send them back to the company for payment.
The company tricks the consumer who wants the work at home job by requiring deposit before they will send you the parts package and kit. The company defines they will refund your deposit when you send back the assembled parts. They use the consideration for the deposit as an assurance you will do the work and return the products assembled.
The gimmick with these companies is that once you send back your assembled products, most or all them will be rejected for not meeting specifications. Therefore, the company does not refund your deposit and you are not paid for the time and efforts you applied.
Email processing
The advertisements states you can earn high income by receiving email sent to customer service websites of major companies, then reviewing and reading the email; and, then forwarding these messages to the proper departments.
The scam here is that “For a Fee”, you can receive a list of companies who will hire you to process emails.
Unfortunately, the list you receive will be worthless. Normally, businesses do not hire individuals to work at home processing email under these type of circumstances.
To be continued.
