/ 18 February 2011

‘Work-from-home’ opportunities are often scams

In these tough economic times, many of us are looking for an extra source of income. Even if you’re not looking to make extra money, be aware that members of your family or your household may be tempted: typically, selling jewellery, make-up or household products seems to be a relatively easy way to earn extra cash.

But be warned that “work-from-home” advertisements are invariably scams. These “opportunities” vary, but most require you to set up a business from home, either selling information that is worthless or offering a job that doesn’t actually exist. You’re required to deposit money into the promoter’s account but receive nothing useful in return (if you receive anything at all).

Not all “work-from-home” opportunities are scams or unfair business practice, though. According to section 12 of the Consumer Affairs (Unfair Business Act) No 71 of 1988, illegal ‘work-from-home” opportunities are usually advertised in newspapers, magazines, print and electronic media, or, say, flyers. These opportunities typically offer typing work, addressing envelopes or labels, filling in envelopes, compiling data and direct selling by sellers who do not identify themselves, their products or their companies in advertisements.

The rule of thumb is that if an opportunity sounds too good to be true, it is. Scammers will claim you can make a lot of money fast and without much effort; you must pay to register or receive information or material; or you will be rewarded if you recruit people.

If you have any doubts about an opportunity, ask for references and ask to see the seller’s credentials. Do they have a website? If so, is the website “flaky”, short on information and fails to provide contact numbers and an address? Is it all “hype” with no real substance? If you are still unsure, seek professional advice, because if you do accept work of this nature you are possibly engaging in criminal activity.

Finally, be aware that some scams add a kicker: “Work from home legitimately!” This does not make the work legitimate — far from it. Don’t be misled by “testimonials” from people claiming that this is legitimate work. Warn your kids, too.

For more information, contact the dti customer contact centre on 0861 843 384.

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