If the nation's growing legion of telecommuters is any indication, Americans are seeking flexibility both in their work schedules and their work environments. While technology has been accused of depersonalizing our society, it can also give us the luxury of spending more time with our families -- that is, if you're one of the lucky Americans working at home on a part-time or full-time basis. In this kind of environment, then, it has become all too easy to pull off scams that play on our desire to work at home. Many of these scams literally arrive in your home -- dropped in your computer's Inbox via e-mail. You've seen those dangling carrots in your Inbox; their subjects scream such headlines as "Earn Thousands from Home," "Tell Your Boss Goodbye," or "Start Your Own Business." The anonymity of e-mail makes it easier than ever for scammers to entice vulnerable consumers. And for consumers, these false promises and the prospect of being one's own boss often prove to be too seductive to resist.

This isn't to imply that all work-at-home businesses are illegitimate; many are reputable and have helped families, retirees, homemakers and single parents achieve greater financial independence. However, technology has provided an environment in which thieves can pose among legitimate businesses and remain relatively anonymous while they scam their way to an early retirement. So what is an aspiring telecommuter to do? The responsibility for protecting yourself lies entirely up to you and depends upon your ability to pick up on red flags. Because it's difficult to seek recourse after an illegitimate company has taken your money, you've got to learn to weed out the false promises from the genuine opportunities.

What do illegitimate companies have in common? The manner in which consumers are asked to repond to the offer. They're often given a phone number and asked to call to find out more about the alleged once-in-a-lifetime opportunity. Nothing ventured, nothing gained, right? Not exactly. These numbers are sometimes 900 numbers, which can charge consumers $2, $3, even $5 per minute for the privilege of listening to a lengthy, prerecorded message. By the time you hang up, you've already emptied your wallet, and without knowing it. Phony companies often ask prospective employees to send in money in advance -- either for membership or to purchase products up front that you'll turn around and sell. In extreme cases, consumers have paid hundreds or even thousands of dollars in exchange for the promise of win-win business opportunities -- the chance to sell products nobody would refuse, and the prospect of wealth. Any request of advance payment should be met with skepticism and an immediate call to the Better Business Bureau.

According to the Better Business Bureau, one of the most common "hooks" attempted by scam artists is envelope stuffing (you've probably seen roadside signs that promise big bucks in exchange for stuffing envelopes, but you'll often receive e-mails that make the same offer). Some envelope-stuffing scams ask consumers to place ads in their local newspapers that make the same get-rich claims. Consumers then profit from other consumers, and the company at the root of the scheme reaps a hefty chunk of the revenues. Other common schemes: asking consumers to purchase software that allows them to work at home as so-called medical billers. In theory, you'd be working as employees of medical professionals who want to hire work-at-home billers. Unfortunately, many consumers have discovered after purchasing the billing software that they can't locate any doctors or dentists who want to use this service. Or consumers find that the software is inadequate, outdated and generally useless. Another common scheme asks consumers to purchase craft-making kits, make the crafts and then sell them either back to the company or to an alleged "market" of sure-thing buyers. The illegitimate company will either refuse to buy the crafts back from consumers, or consumers find that no market exists for these finished crafts.

The National Consumers League (NCL), a nonprofit consumer advocacy organization based in Washington, D.C., has listed its top 10 most common telemarketing schemes of 1999. Number one on the list was work-at-home schemes, most often "kits" that dangle the prospect of wealth over consumers' heads. Work-at-home schemes actually have moved from #5 on the NCL's list in 1998 to #1 in just one year. It's an ironic statistic, considering the relative vitality of our national economy and our national unemployment rate, which continues to hold steady at a low rate. Nevertheless, as many Internet titans have proven, our technology-driven society has turned more than a few shrewd businesspeople into multimillionaires and even billionaires overnight. This atmosphere is intoxicating and can lead consumers down paths that sound promising but all end the same way: with lost savings, frustration, little recourse, and ultimately, cynicism and resentment.

The word "home" has led some of us to believe that perhaps this style of work is easier. But working at home is a challenging venture, whether you go into business for yourself or not. Let's face it, if getting rich quick from home was such an easy task, we'd all be home-based entrepreneurs. If working at home is your goal, you don't have to turn a blind eye to all outside prospects. Do your homework, and align yourself with a legitimate company. Go to the NCL's Web site at www.fraud.org for more information, or call your local chapter of the Better Business Bureau. Even if a company sounds legitimate and promising, have the company investigated before you respond to their pitch. You have nothing to lose and everything to save.

Published: January 26, 2000

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