Online Businesses

Avoiding Online Business Opportunity Scams

There is no category more filled with scams, deception and fraudulent claims than that of the Business Opportunity – and of all the opportunities most open to widespread abuse are those using the Internet as a vehicle. In a market that preys on people’s greed, desperation and hope online business opportunity scams can easily and cheaply pin-point target their victims and follow them around in their daily browsing habits until they click.

This is why you can’t go on social media or run any online job search without being bombarded with ads and videos claiming to offer an exciting new wealth-making opportunity.

The ads can be disguised as legitimate jobs to hook in the unemployed, or as training for small businesses and entrepreneurs.

Typically using carefully written scripts, and clever psychological tricks these ads and videos are designed to grab your attention and focus on your current failings in life. Many use different ads for different failings and needs, with intelligently automated systems to ensure the right ad is sent to the right category of prey. These lazer-focused ads are designed to hit pain points and build strong negative emotions – before giving you the solution: their free or low-cost training.

For those who sign up there may be some genuinely useful hints and tips on offer, but the sole aim of these scams is to bring you deeper into their web by hinting at greater secrets ahead, and secrets only available to their members. Cue glowing testimonials, examples of high earnings and other social proofs – after all, this is the “real deal”. By this time you’re hooked and if you’ve drunk the kool-aid you’re only a click (and several hundred or thousand dollars) away from all the answers you’ll need. And they have you.

The FTC have clamped down hard on the promotion of business opportunities recently and have very strict guidelines in place regarding exactly how ads, videos and sales copy can be presented – but we see non-compliant offers every single day.

From false earnings claims and invented testimonials, to a lack of even the most basic compliance – no disclosures or disclaimers, no contact info or refund policy. The only thing you can click is the buy button.

You end up paying for starter kits or certifications that are useless, find your credit card is charged without your permission, or get caught up in a fake check scam.

The ads don’t tell you that you may have to work a lot of hours without pay, or don’t disclose all the costs up-front. You might spend money based on promises you’ll quickly earn it back — but you don’t. People tricked by work-at-home ads have lost thousands of dollars, not to mention their time and energy.

“Be very skeptical of promises that you’ll make a lot of money by working from home,” says Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “We see [many] companies that are just out to take your money, not help you make it.”

So how can you protect yourself when looking at online business opportunities?

• Only use legitimate and trusted companies or services, such as those we list above.
• Promises of a big income working from home, especially when the “opportunity” involves an up-front fee or giving your credit card information, should make you very suspicious.
• Check that the opportunity complies with the FTC’s Opportunity Rules and that they carry an FTC compliant disclosure. Are their earnings claims backed up by a suitable earnings claim statement? If not, walk away.
• Check a service or company’s credentials at the BBB and with your local Chamber of Commerce if they are in-state.
• Read online reviews – is there a pattern of complaints with the company or service concerned?

There are legitimate ways to earn good money online, and you can too provided you use common sense and investigate any claims before parting with cash.

Example Cases
Work from home business scam sidelined
Business “coaches” ejected from game – for life
Promoter pitches “secrets” to big bucks on Amazon
Work-at-home scam leads to business coaching schemes
New easy money con, same old tricks