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The skinny on business scams

Beware of business “opportunity” scams that you may find out about on the Internet, in your local newspaper, through the mail, and so on. Typically, the promoters of these scams promise you’ll earn big bucks after you pay them for equipment, software, supplies, training materials, and/or business leads. Typically, the value of what they sell you is negligible and far less than the fee you pay. Two common work-athome scams are envelope stuffing and medical billing. If a business opportunity sounds interesting, ask the promoter to send you printed information about its offer. Among other things, the information should.

Indicate the promoter’s name, address, and phone number. Explain the business opportunity in detail — what you will get for your money and what assistance the promoter will give you. State the opportunity’s total cost, as well as how and how often you’ll be paid, who will pay you, and all terms and conditions for getting paid.

Ask for the names and phone numbers of people who have pursued the business opportunity, and contact them to find out if it lived up to their expectations. If the business promoter offers instead to provide you with a list of testimonials from happy business owners, don’t accept it. The testimonials may be made up. Don’t work with a business opportunity promoter who has no information to send you or no references you can contact.

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