Two people sending and receiving money to each other via smart phones

Cash App scams on the rise

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During the pandemic, more consumers than ever have turned to peer-to-peer payment apps to send money to friends and family, with usage expected to increase by 37 percent in 2021. With the rise of these services, there has also been an uptick in fraud, as scammers have embraced these nearly instant and often irreversible payments to defraud consumers.

One app in particular, Square Inc’s Cash App has become a particularly popular payment method among scammers. According to the Federal Trade Commission (FTC), complaints involving payment via Cash App increased by 472 percent year-over-year in 2020. So far this year, the FTC received more complaints against Cash App (2,431) than other peer-to-peer services like Zelle (191) or Venmo (845).

These worrying trends are also reflected in the complaints we have received at Fraud.org. Complaints involving Cash App more than tripled during the second half of 2020, a trend that has continued 2021 as well.

The median loss reported in the complaints involving Cash App is about $500, though many consumers have reported losses in the thousands and some even in the tens of thousands of dollars.

In one particularly egregious case, a consumer from Texas reported losing $15,000. A consumer in Pennsylvania reported losing $5,000 after his wife fell victim while trying to activate her Cash App debit card. The PA couple was unable to get their money back because their bank pointed to the wife as having authorized the transaction.

Victims of fraud involving Cash App have been vocal about the lack of customer support they receive from the company.

Cash App’s customer service number leads to a recording encouraging callers to contact customer service through the app, saying “live phone support is not generally available at this time.” The recording goes on to advise listeners on scams, saying, “Please be aware that Cash App employees are often impersonated by scammers circulating fake phone numbers online.” This leaves frustrated victims of fraud to leave a message in the app and hope someone gets back to them.

Scammers have rushed in to fill the hole in Cash App’s customer support framework. The Central Virginia Better Business Bureau has reported it receives complaints about Cash App daily, mostly from users who have fallen victim to bogus Cash App support services. Fraudsters have pushed fake Cash App customer service numbers to rise to the top of Google Search results in an effort called “search poisoning.”

Fraudsters have also taken advantage of #CashAppFriday, a promotion on Twitter the company runs that offers giveaways to users who engage with the hashtag.

The scammers start their own threads or infiltrate legitimate ones, asking those that respond to send them a small amount of money with promises of sending back more. Any posting promising to “flip” your money is a scam, as Cash App does not engage in that practice.

You can reduce your risk of falling victim to Cash App scams. Here’s how:

  1. Increase security measures. Enable the Security Lock setting that requires your passcode when making a Cash App payment. Turning on notifications that alert you by text message or email will also help keep track of payments. Adding two-factor authentication to your email associated with your Cash App account will also help secure your account.
  2. Only send money to people you know and trust. Beware of scammers who ask for a small payment in exchange for free money. This is a scam. Do not send money via Cash App (or any other P2P payment app) to anyone you do not know personally.
  3. Don’t share sensitive information. Real Cash App support representatives will not ask you to provide your sign-in code, PIN, or social security number. Also, be sure not to share personal information like your bank account or credit card information with anyone you do not know.
  4. Only keep as much money in your account as you need. Remember that Cash App is not a bank and does not have the same regulations or protections for customers. Only put as much in your Cash App account as you need at the moment and keep the rest of your money in a more secure environment.
  5. Ensure you are contacting Cash App customer service using the right channels. Cash App recommends speaking to a representative through the app or on the web at app/help. If you are unable to get through to someone using the app which many people have pointed out is common, call 1-800-969-1940. Beware of fake Cash App customer support phone numbers that may appear in online search results or advertisements.

If you or someone you know has been a victim of a Cash App scam or any other type of fraud, we urge you to file a complaint at Fraud.org via our online complaint form.

coronavirus vaccine card and fast maske

Newest pandemic scam: Fake vaccination cards

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As vaccination efforts continue to ramp up, scammers have found a new way to keep the COVID-fueled fraud wave going: counterfeit vaccine cards.

Though a billion vaccine shots have been administered throughout the world, not enough of the world’s population has been vaccinated to stop the spread of COVID-19. Many businesses and organizations are now requiring proof of vaccination, leading to the rise of counterfeit vaccine cards. Online advertisements for fake vaccination cards are popping up all over sites like eBay and Etsy, ranging in price from $20 to $60. Demand for fake vaccination cards may rise as more organizations require proof of vaccination to do things like travel on an airplane or attend events.

The rise in sales of fake vaccine cards led 45 states attorneys general to call on Twitter, Shopify, and eBay to stop the sale of false and stolen vaccine cards. Pennsylvania Attorney General Josh Shapiro said his office was seeing a huge market for the fake cards, undermining public health.

In addition to fake vaccination cards, the Federal Trade Commission warns that scammers are doubling their efforts to peddle fake vaccine appointments in order to defraud people out of money and steal their identity. In reality, neither the COVID-19 vaccine nor appointments to be vaccinated have any cost to consumers. Fraudsters are exploiting the unfamiliar territory of booking a vaccine appointment to extract information from unsuspecting victims, such as Social Security numbers and bank account information.

Use the following tips to avoid falling victim to COVID-19 scams and to help stop scammers:

  1. Don’t pay for the COVID-19 vaccine or to book an appointment. Regardless of your health insurance status, you do not need to pay to book an appointment or to receive the coronavirus vaccine. The only cost associated with the vaccine is administrative, and the organization administering your vaccine will reach out to your health insurance company directly. If you are uninsured, the Health Resources & Services Administration has programs available to cover the cost of a vaccination. If someone is asking you to pay for a vaccine or an appointment, it is most likely a scam.
  2. Do not share personal health information with people you don’t know. Legitimate vaccination locations will not ask for personal information like your bank account, credit card information, or Social Security number. If you have questions about what is appropriate, check with your local health department or contact your doctor.
  3. Don’t share fully legible images of your vaccine card on social media. People are understandably excited to share with their friends and family that they have been vaccinated, but sharing your vaccine card on social media opens the door for fraudsters to steal your identity. If you do plan to share your vaccine card online be sure to cross out sensitive information like your full name, birthday, and dates you received the vaccine.

If you or someone you know has been a victim of a stimulus check scam or any other type of fraud, we urge you to file a complaint at Fraud.org via our online complaint form.

Scammers using fake court summons to extort the unsuspecting

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The hottest fraud of 2020, according to the FTC, was imposter scams — when criminals impersonate a government official, a law enforcement officer, a business, or a trusted friend or family member to trick victims into sending money. A new form of the scam we’re seeing is con artists posing as court representatives, telling people they have missed a court date or failed to show up for jury duty and intimidating victims into paying bogus fines by threats of arrest.

Libby, a consumer living in Washington, DC, recently became one such victim and agreed to share her story with us. Libby was contacted by someone posing as a police sergeant who claimed to be reaching out because she had missed a court summons. The scammers impressed upon her that she could be arrested and held for 72 hours if she failed to cooperate. Horrified, and thinking of her young son, Libby urgently needed to take care of the matter to ensure she was able to continue to care for him.

Still, Libby made sure to do her due diligence by trying to verify what the scammers were telling her. In addition to providing personal information about Libby, like her address and profession, the scammers used legitimate names of local law enforcement and court officials. When the information they provided checked out, Libby thought it was plausible she had missed a mailing alerting her to appear in court during such a chaotic year. The scammers then transferred Libby to what they claimed was their billing department and instructed her to transfer money to a Treasury Department account. They warned Libby against taking pictures of the transactions, threatening her with retaliation if she “broke the law.” In the end, Libby lost $2,500 to the imposter scam, not to mention the emotional distress she endured from the encounter.

Stories like Libby’s are, unfortunately, not uncommon. The United State Courts have warned people for years of these long-running imposter scams. According to the Federal Trade Commission government imposter scams more than doubled between Q2 and Q4 of 2020 after steadily declining for a year. Localities all over the country are reporting an uptick in jury duty scams.

The best way for consumers to avoid falling victim to this type of imposter scam is to understand the following red flags:

  1. Scammers may use aggressive tactics like urging you to act quickly and threatening you with jail time. Slow the conversation down. Give yourself time to verify the information they provide and contact your local law enforcement.
  2. Our personal information, as well as contact details for local law enforcement and court officers, is readily available online. Scammers use these details to add legitimacy to their claims. Just because the person on the phone has some accurate information about you doesn’t mean what they are telling you is legit.
  3. Fraudsters may demand money through wire transfer or gift cards. Money sent via these hard-to-track methods cannot be easily recovered. If someone calls you asking for payment via one of these methods, it is almost certainly a scam.
  4. Court officials and local law enforcement will never tell you that you cannot have a receipt for proof of payment. If someone is insisting that’s the case, it is probably a scam.

If you or someone you know has been a victim of a stimulus check scam or any other type of fraud, we urge you to file a complaint at Fraud.org via our online complaint form.

Partial image of 100 dollar bill and corner of stimulus check

Advocates warning new wave of stimulus check scams headed our way 

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By the time you read this, the United States Congress is likely to have had its first votes that could ultimately lead to the passage of a third COVID-19 pandemic stimulus bill. If the bill becomes law, which seems likely, millions of consumers will be in line to receive another round of stimulus payments of as much as $1,400. In fact, many consumers are still awaiting stimulus checks from the second COVID-19 relief bill that Congress passed late last year. 

With each new round of stimulus payments since the pandemic began last March, scammers have sought ways to defraud consumers out of their checks, their personal information, or both. With that experience in mind, and with potentially larger stimulus checks on the way, we expect the fraudsters will be up to their old tricks.  

The best way for consumers to avoid falling victim to these scams is to understand some simple rules about receiving the checks: 

  • For the vast majority of consumers, you will not need to do anything in order to receive the checks. They will either be direct deposited into your bank account, or you will receive a paper check, or a prepaid debit card in the mail.
  • There is no way to get the check “early.” While it may be tempting to believe someone who says that they can get you your payment as soon as possible, know that they are only trying to scam you.
  • The IRS will not contact you to confirm your information. After previous rounds of stimulus, scammers sent out convincing-looking emails and text messages claiming to be with the IRS. These messages encouraged consumers to click on a link where personal information like bank account routing information, Social Security Numbers, or other sensitive data were harvested. 
  • To obtain the most up-to-date information about the status of your stimulus check, visit the IRS’ “Get My Payment” page here.
  • Beware of scammers impersonating the IRS or other government agencies who claim you were “overpaid” and demand you send money back to them.

If you or someone you know has been a victim of a stimulus check scam or any other type of fraud, we urge you to file a complaint at Fraud.org via our online complaint form.

Special event: The COVID pandemic has super-charged eCommerce, causing consumers to flock to online shopping as never before. To learn more about this trend and what is being done to create a safer shopping experience, tune in to NCL’s Facebook Live event this Thursday, March 4 at 3:00 PM ET featuring a fireside chat with NCL Executive Director Sally Greenberg and Amazon’s Vice President of Customer Trust & Partner Support Dharmesh Mehta.

RSVP here
Neon sign reading top 10

Annual Fraud.org report shows link between COVID-19, recession, and scams preying on Americans

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Last year, as millions of Americans struggled to make ends meet due to the COVID-19 pandemic, scammers took advantage of an unprecedented opportunity to defraud consumers. That is the conclusion of Fraud.org’s annual Top Ten Scams Report, which goes live today. The combination of widespread economic vulnerability and social isolation brought on by the pandemic correlated with an increase in two specific fraud categories last year: bogus prize/sweepstakes/gift scams and romance scams. 

Top Ten Scams of 2020

  1. Internet: Gen Merchandise
  2. Phishing/Spoofing
  3. Fake Check Scams
  4. Friendship & Sweetheart Swindles
  5. Prizes/Sweepstakes/Free Gifts
  6. Advance Fee Loans, Credit Arrangers
  7. Computers: Equipment/Software
  8. Internet: Auctions
  9. Investments: Other
  10. Internet: Extortion

Sweepstakes scams, which made up nearly a quarter (23.78 percent) of all complaints received by Fraud.org in 2020, topped the list. The number of complaints we received nearly doubled versus the prior year. In these scams, fraudsters contact a victim to let them know they have won a prize or other monetary reward. The catch is that before the money can be collected, the victim must send payment. If the victim sends the money, they then enter a cycle where they are required to continually send additional payments in search of the fictitious “prize.” 

Another fast-growing type of fraud in 2020 was friendship and sweetheart swindles, also known as romance scams. The number of complaints received at Fraud.org about such scams increased by 30.06 percent in 2020, making it the fifth-most reported category of scam, with a median loss of $1,628. Given the social isolation brought on by the COVID pandemic, this data underscores the warnings that Fraud.org and other organizations have raised about the rising risk of such scams. 

A new form of fraud entered the top ten in 2020, and they are particularly ugly: extortion scams.

“As the pandemic and the recession continue to grind on in 2021, we are paying special attention to so-called ‘Internet extortion’ scams, which entered the top ten scams for the first time last year,” said NCL Vice President of Public Policy, Telecommunications and Fraud John Breyault and report author. Such scams fall into two broad sub-categories. The first category is “sextortion” scams, where consumers receive a message where the scammer threatens to release embarrassing photos, videos, or other personal information to the victims’ friends and family. The second sub-category involves “psychic” services, where the scammer claims to had discovered that a “curse” or other tragic event is about to befall the victim. Only by paying a significant fee can the victim have the “curse” lifted. 

While the red flags of these scams vary from case to case, a good rule of thumb for recognizing these crimes is that a request for money to be sent to someone you have never met in person is almost always the hallmark of a scam. Also, being aware that scammers are adept at creating a sense of urgency in their victims (e.g., “Pay now or you’ll miss out on this prize!”) is a good way to recognize these scams for what they are. 

The Top Ten Scams Report was compiled from more than 5,700 complaints filed by consumers with Fraud.org in 2020. We share these complaints with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. If you or someone you know has been a victim of a scam, we urge you to file a complaint at Fraud.org via our online complaint form.  

Image of person in labcoat holding a vaccine vial labeled COVID-19

Scammers gearing up to latch on to COVID-19 vaccine push 

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As the new year has dawned, there is, at last, some light at the end of a very dark tunnel of bad COVID-19 news. The COVID-19 vaccines are starting to be distributed to the healthcare workers who have been on the frontlines of the pandemic, as well as to other at-risk Americans. In the coming months, the vaccine will become available to millions more members of the general public. While this is undoubtedly good news, there is likely to be far greater demand than supply for the vaccine, at least in the early stages of the distribution campaign. This will create a perfect opportunity for scammers to latch on to consumers’ understandable desire to be vaccinated as quickly as possible. 

Already, we are seeing warnings from law enforcement agencies like Interpol and the Federal Trade Commission that organized crime groups are gearing up to take advantage. If experience from previous pandemics like the 2014 ebola outbreak and the 2009 H1N1 epidemic are any guide, scammers will seek to take advantage of public interest in the outbreak to sell phony “cures” or to offer consumers bogus vaccines in exchange for a fee. We anticipate a flood of emails, text messages, and robocalls trying to trick the public into giving up sensitive personal information. 

One of the best ways that consumers can defend themselves against scammers seeking to profit off our interest in the COVID-19 vaccine is to get educated about the red flags of likely fraud. Some common schemes we anticipate scammers using include: 

  • Want early access to the vaccine? Pay us. The vast majority of Americans will not need to pay any out–of–pocket costs to access the vaccine. The distribution processes for the vaccine will be decided largely by state governments, and we anticipate consumers will receive guidance from state health officials on where they land in the vaccine queue. If someone claims they can offer you “guaranteed” access to the vaccine in exchange for a fee or personal information, it’s a scam. 
  • You don’t need to be on a list to get the vaccine. Check with your doctor or your local public health agency for details on how and when you can get the vaccine. Any emails, text messages, or phone calls asking for personal information to “add you to the list” to be vaccinated are likely scams. 
  • Watch out for websites or advertisements offering “alternatives” to the vaccine. Surveys show that significant percentages of Americans may be wary of being vaccinated. Scammers who offer to sell you “alternative cures” to COVID-19 are just trying to scam you. Beware, too, of websites that offer COVID-19 “treatments,” for a fee. 

If a scammer contacts you offering to help you get access to the COVID-19 vaccine, we want to hear about it! You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars. 

Your ‘Secret Sister’ could be a pyramid scheme operator

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Who doesn’t love getting gifts during the holidays? Sharing presents with friends and family is one of the highlights of the season. Unfortunately, scammers are once again looking to take advantage of our love of gifting—and receiving—with the “secret sister” scam.  

We are seeing this everywhere on social media right now. The scheme usually begins with a festive Facebook post or a text message or email encouraging friends to join in on the giving by sending “just one” gift (often a book, bottle of wine, or a gift card) to a “secret sister.” The friendly message guarantees participants will receive at least one (and maybe dozens) of gifts in return. These messages may also have phrases like “happy mail,” “for the good of the sisterhood,” “holiday gift exchange,” or similar wording.  

To keep the “secret sister” chain going, the message invites the recipient to share the invitation with friends and family by entering personal information (e.g., name, mailing address, email address) and the contact information of the people you hope to recruit into a list online. People who send you these messages may not even know it’s a scam. 

In reality, the only people getting a gift in this scheme are scammers. By supplying personal information, even information as seemingly innocuous as name and mailing address, you could increase your risk of identity fraud. And if you mail a gift to someone you don’t know, chances are that it will just go to a scammer looking to enrich themselves, not someone you know. 

The “secret sister” scam is also a pyramid scheme. Pyramid schemes are illegal because they are based on efforts to recruit new people into the scheme, not actually sell or exchange anything of value. Eventually, all pyramid schemes collapse when they run out of new recruits, leaving the vast majority of those who joined with nothing. These schemes may also violate state anti-gambling laws since they can resemble illegal chain letters.  

While it may seem like you’re just doing something fun with people you know and trust, by circulating these messages you may be helping to perpetuate an illegal scheme. If you or someone you know receives a “secret sister” message, here are some tips to stay safe and avoid being a victim: 

  • Ignore the message. The “secret sister” scam works because people engage with it and share it with friends and family. Don’t be another link in the chain. If someone you know sent you the invitation, let them know that it’s a scam. Feel free to share a link to this article! 
  • Flag the message. Most social media platforms, allow users to report suspicious messages. On Facebook and Instagram, for example, there is usually a button with three dots at the top of messages that allow for a post to be reported as suspicious. 
  • Don’t share personal information. Providing personal information to someone you do not know can increase the risk of identity fraud, even if it’s something as seemingly trivial as a name and email address. 

If you suspect that you or someone you know has become a victim of the “secret sister” scam or any other fraud, report it at once. You can file a complaint at Fraud.org via our online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

Looking for gig economy work to help make ends meet? Don’t be a scammer’s next payday!

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With large swaths of the economy still shut down or operating at limited capacity due to the coronavirus, millions of workers are turning to gig economy apps like Instacart, Uber, Lyft, TaskRabbit, DoorDash, and others to help make ends meet. While these apps can be great for finding flexible job opportunities, their increasing popularity is attracting scammers looking to take advantage of gig workers and their customers.

We’re hearing about two types of gig economy scams.

Instacart premium job scam

Instacart is a service that connects consumers with workers (confusingly called “shoppers”) who are paid to do the shopping on their behalf for a fee, plus tips. Workers scan the app for jobs they’d like to do (called “batches”), claim them, then do the shopping. Bigger batches with more items are generally more expensive totals and, in theory, result in bigger tips for the shopper fulfilling them. This can make competition for attractive batches fierce for the thousands of shoppers who have flooded the app since the pandemic began.

Seeing an opportunity, scammers have begun advertising on social media and elsewhere that they can get shoppers access to premium jobs with big tips, in exchange for an upfront fee.

The complaint an Instacart shopper from Florida sent us is typical of these scams:

“I’m a shopper for Instacart trying to make some income during this pandemic when the economy has been turned upside down and many have lost their jobs and have turned to alternative jobs like food delivery, grocery shoppers, etc. As a result, there is a lot more competition to get orders in applications like Instacart,” she wrote. She saw a website promising better batches for higher pay to Instacart shoppers using the service, in exchange for a $200 upfront fee. “After payment communication on their side stopped and I requested a refund and all has been ignored,” she wrote. “I was robbed [of] $200.”

Tip: If someone promises to deliver you premium Instacart batches in exchange for a fee, that’s a red flag. At best, they’re violating Instacart’s terms of service. At worst, it’s a scam designed to rob you of your money.

Cash out account phishing leads to lost pay

Many gig economy apps offer their workers a service where their earnings can be cashed out and deposited into a bank account or prepaid debit card upon request. Scammers have tried to take advantage of this by calling gig economy workers posing as a representative of the app operator. The imposter asks the worker to click on a link in a text message or email that is sent to them (for reasons such as “verification” or “security”). The link then takes the worker to a legitimate-looking phishing website, where they are tricked into providing their login credentials.

Once the scammer gets that information, they can change the bank account that the worker’s pay goes to and cash out the worker’s earnings elsewhere. Recognizing this scam, gig economy apps like GrubHub and Doordash have instituted waiting periods when bank account information has been changed. However, this can still leave workers who don’t cash out often at risk of losing their hard-earned pay.

Tip: Gig economy apps will NEVER call or text you asking for your login credentials. If someone does so, it’s a scam. If two-factor authentication is available for the app you are using, turn it on. And if you think your account may have been compromised, report it immediately to the app’s support team.

If you suspect that you have become a victim, report it immediately. You can file a complaint at Fraud.org via our secure online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

Read our other Fraud Alerts here.

Scammers capitalizing on online shopping boom with wave of package delivery fraud

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The COVID-19 pandemic is dramatically altering how millions of American consumers shop, with online sales skyrocketing thanks to consumers’ concerns about the health risks of shopping in brick and mortar stores. According to the United States Census Bureau, U.S. retail e-commerce reached $211.5 billion in the second quarter of 2020, up 31.8 percent from the first quarter and 44.5 percent year-over-year. With delivery vans buzzing around neighborhoods as never before, scammers are looking to capitalize on this trend.

According to reports from the Federal Trade Commission and the Better Business Bureau, scammers are increasing their use of the fake package delivery scam. In a typical scam of this type, consumers receive a text message, email, or phone call informing them that they have a package waiting for them or that the delivery service (e.g., FedEx, UPS, or USPS) was unable to deliver a package.

To get the package delivered, the consumer is asked to click on a link and “verify” personal information or supply payment information (like a credit card or bank routing number) to reschedule the delivery. In other cases, the scammers’ messages may direct recipients to an authentic-looking website (for example, a phishing site that looks like an Amazon customer satisfaction survey). Consumers who fall for this scam can end up inadvertently signing up for difficult-to-cancel subscription services.

These delivery messages can be quite convincing—but they are fake and generated by scammers trying to extract valuable information from consumers. As consumers come to rely more on e-commerce for day-to-day needs, they may be more likely to assume these messages are legitimate. However, with a little knowledge, you can avoid being the next victim of these swindles.

Here are the steps you can take to reduce your risk:

  1. Do not click on any links or attachments in text messages or emails claiming to be from a package delivery service. If you receive a phone call from someone claiming to be with a package delivery service, hang up. Do not press “1” (or any other number) to be connected to a representative.
  2. If you do click on a suspicious link, do not supply any personal information such as your Social Security number, mailing address, credit card number, or bank account routing information, even if it is just to “verify” your identity.
  3. Do not be alarmed by language in text messages, emails, or phone calls that claim your response is “urgent.” This is a common tactic that scammers use to get you to act before thinking.
  4. If you are unsure whether you have a package waiting for you, go the delivery service’s website (e.g., amazon.com, usps.com, or ups.com) and enter the tracking number there.
  5. If you receive a spam text message, forward it to short code 7726, which sends the message to the GSMA’s Spam Reporting Service. This is a service run by the major U.S. wireless carriers to help identity trends in scam texts. You can also report these scams via our secure online complaint form at Fraud.org.

If you suspect that you have become a victim, report it immediately. You can file a complaint at Fraud.org via our secure online complaint form. We’ll share your complaint with our network of law enforcement and consumer protection agency partners who can investigate and help put fraudsters behind bars.

Read our other Fraud Alerts here.

Work-at-home

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The ad says you can make lots of money working from the comfort of your home. But if this were true, wouldn’t we all be working at home?

Stay safe. Be Informed.

  • Know who you’re dealing with. The company may not be offering to employ you directly, only to sell you training and materials and to find customers for your work.
  • Don’t believe that you can make big profits easily. Operating a home-based business is just like any other business—it requires hard work, skill, good products or services, and time to make a profit.
  • Get all the details before you pay. A legitimate company will be happy to give you information about exactly what you will be doing and for whom.
  • Find out if there is really a market for your work. Claims that there are customers for work such as medical billing and craft making may not be true. If the company says it has customers waiting, ask who they are and contact them to confirm. You can also ask likely customers in your area (such as doctors for medical billing services) if they actually employ people to do that work from home.
  • Get references for other people who are doing the work. Ask them if the company kept its promises.
  • Be aware of legal requirements. To do some types of work, such as medical billing, you may need a license or certificate. Check with your state attorney general’s office. Ask your local zoning board if there are any restrictions on operating a business from your home. Some types of work cannot be done at home under federal law. Look for the nearest U.S. Department of Labor in the government listings of your phone book.
  • Know the refund policy. If you have to buy equipment or supplies, ask whether and under what circumstances you can return them for a refund.
  • Beware of the old “envelope stuffing” scheme. In this classic scam, instead of getting materials to send out on behalf of a company, you get instructions to place an ad like the one you saw, asking people to send you money for information about working at home. This is an illegal pyramid scheme because there is no real product or service being offered. You won’t get rich, and you could be prosecuted for fraud.
  • Be wary of offers to send you an “advance” on your “pay.” Some con artists use this ploy to build trust and get money from your bank. They send you a check for part of your first month’s “pay.” You deposit it, and the bank tells you the check has cleared because the normal time has passed to be notified that checks have bounced. Then the crook contacts you to say that you were mistakenly paid the wrong amount or that you need to return a portion of the payment for some other reason. After you send the money back, the check that you deposited finally bounces because it turned out to be an elaborate fake.

Find Fraud Alerts related to this scam here.

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