Feds Crackdown on Online Scam Companies

watch out for online scams

The Federal Trade Commission has yet again put an end to two companies that allegedly scammed consumers by promising them a considerable amount of income through home-based businesses. A company called The Tax Club was accused of selling services by allegedly falsely claiming they would help consumers to succeed in their home businesses.  According to a complaint received by FTC, the company falsely claimed to be affiliated with companies that consumers had already bought services or products from.

The second settlement that was announced was for the American Business Builders for falsely selling a home-based business opportunity where consumers were asked for a fee between $295 to $495 that said to make a significant amount of income by earning commissions alone. The Tax Club and American Business Builders are charged with a fine of $15.6 million and $5.4 million dollars respectively.  Aside from the fine, the operators and affiliated businesses are now barred from selling or benefitting from consumers’ personal information, and failing to properly dispose of consumer information.

You also need to be wary of work from home scams

How wide are online scams? From computer virus cold calling scams from India to online lottery scams and dating scams. Home based work scams were the most common on the web. The “get rich quick” schemes proved to be a hot selling bundle online. Most people don’t even believe if legitimate online jobs do really exist. Considering the kind of economy we have today, everybody needs a job and scammers do what they do best – making too good to be true job postings online that entice young and old people to fall for their trap, which can include making applicants pay for a training fee.

A legitimate job doesn’t make the applicants pay for the training; it is the applicant’s prerogative to receive compensation for every training or work he/she does for the company.

The internet offers a global marketplace for consumers and businesses, but it also serve as an easy gateway to various scams. What netizens should do is to stay vigilant against online scams. Be aware of those opportunistic scams you come across with. Do your research first about the company and do not ever divulge any personal and financial information. If you are looking for legitimate online job agencies go for those sites that have high trust ratings. Everyone should put up a scam-detection radar.

These are some positive indicators to watch out for if you are looking for a legitimate  employment online:

  • See how established the company that was hiring.
  • The Ad should include the company name and physical address.
  • The Human Resources Personnel of the company should be available for any inquiries.
  • Company values and policies should be clear.
  • A detail Job Responsibilities and duties is provided.
  • Work experience and References is requested.

 

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