There are various warning signs of fraudulent business opportunity scams. This fraud promises victims jobs, government grants or other money making solutions. To reduce these scams, the Federal Trade Commission has enforced strict rules. Certain disclosures must be made when offering investment or job opportunities to consumers. As an entrepreneur looking for a new career opportunity, use these disclosures to confirm the business seller, earning claims and overall productivity. Read on for the warning signs of fraudulent business opportunity scams.
Too Good To Be True
First, a common warning sign of fraudulent business opportunity scams is that it’s too good to be true. An opportunity may seem too good if the job found you, there is an abnormally high pay or if you instantly get the job. On average, 80% of business opportunity scam victims were contacted without showing interest in the job. The “employer” reaches out to their victims and tells them that they are a finalist after “reviewing” their resume. Additionally, they will offer a much higher salary than other hires of the same job would receive. More so, after a quick phone or online interview, you will immediately be offered the position. Certainly, beware when opportunities reach out to you with a strangely high pay rate and seems too good to be true. Of course, it is more than likely a fraudulent business opportunity scam.
In An Obscure Location
Secondly, obscure location opportunities are a sign of a fraudulent business scam. Typically, fraud business opportunities are located in places such as Liberia, Nigeria or Indonesia. Before interacting with the offer, check the state or country jurisdiction to see if it covers the type of business they’re advertising. Additionally, if out of state, confirm that the opportunity costs more than $20,000. Federal prosecutors usually won’t indulge in a case worth less than $30,000. Therefore, if you are scammed, you have a better chance of suing the company and getting back whatever was stolen. Definitely be cautious of business opportunities in obscure locations.
Unfounded Product Claims
Next, if there are unfounded product claims, it is likely a business opportunity scam. Typically, these scams occur in health and wellness companies. These businesses boast about their products and results. For example, they promise medicines, smart drugs or services that cure ailments or work miracles. Of course, before indulging in this opportunity, do your research. Buy the product then test it, look up reviews or talk to those who have bought from the company. You don’t want to be connected or held accountable for a faulty product or a product held for litigation. Certainly, unfounded product claims are a reliable warning sign of a fraudulent business opportunity scam.
Of course, incomplete contracts are another sign of fraudulent business opportunity scams. Typically, business contracts are a lengthy read and are completely thorough. Beware of fraud if the contract takes you less than five minutes to read, is incomplete or if the “employer” is offering things not included in the document. Confirm the contract is authentic by asking the promoter questions and thoroughly reading it through. Or, you can bring it to a trusted attorney or lawyer who can scan through it and approve it. Additionally, they can protect you if your contract is ever breached. Certainly, if you receive an incomplete contract, be cautious of a fraudulent business opportunity scam.
Personal Information Requirements
Finally, you are usually a target of a business opportunity scam if the “employer” requests personal information. Most job opportunities require personal information after giving you their information, multiple interview sessions and introductions to the company. If you are required to provide any information or make a money investment before talking to an “employer”, beware. By providing bank account numbers, your social security numbers or even your address, you put yourself at risk for identity theft. Of course, if there is a business opportunity that requires personal information before the initial meeting or hire, you are likely a target for fraud.
There are several warning signs of a fraudulent business opportunity scam. First, if the job finds you, offers a lot of money and offers the position immediately, you might be getting scammed. Secondly, if the position is offered in a strange location such as Liberia, be cautious as scammers are likely to operate in locations where there are no penalties. Next, unfounded product claims are usually a scam since you can be held responsible for faulty products or litigation. Of course, you may be the victim of fraud if the business provides you with an incomplete contract. Finally, if a company requires personal information before meeting or providing position-based information, you could be at risk. Certainly, these are clear warning signs of fraudulent business opportunity scams.