A work-from-home job can be a great opportunity – as long as the company and the job are legitimate.

These days, more and more people are looking for opportunities to work from home. Legitimate work-from-home jobs can provide flexible schedules and improve the work-life balance. Plus, you can’t beat the commute!

Lots of great remote jobs are out there, but lots of scammers are posting fake work-from-home opportunities that are designed to steal your money, your time, or your identity, too. Hopeful job seekers have become accustomed to virtual interviews and electronic communication with employers, so these days no one is suspicious if they never meet their employer in real life. This disconnect contributes to the rise in the number of scams involving phony remote jobs. In this article, we’ll look at common work-from-home scams, red flags to watch out for, and ways to stay safe.

4 Common Work-From-Home Scams

Here are four scams to watch out for:

1 Repackaging, Reshipping, Reselling

Jobs that involve repackaging, reshipping, or reselling goods from home are very likely to be scams. The goods could be stolen, and you’re being used to throw law enforcement off the trail. Here’s how these scams work:

Lots of great remote jobs are out there, but lots of scammers are posting fake work-from-home opportunities that are designed to steal your money, your time, or your identity, too.

Fraudsters post jobs online for quality control managers or virtual personal assistants. Once you’re “hired,” the company tells you that your “job” is to receive packages at home, throw away the original packaging and receipts, repackage the products, and then reship them to an address they provide – often one overseas.

The products are generally high-priced items that have been purchased with stolen credit cards. Your reshipping “job” is just part of the scam. Companies might say they’ll pay you after you work for a month, but the check never arrives. You may also have an identity theft problem if you provide personal information thinking it was for payroll.

In reselling scams, you might see an online ad or get a call from a stranger offering you a job. You’re told you can make money buying brand-name luxury items below retail prices and selling them for profit. Unfortunately, after you pay for the products, it’s likely you never receive them, or if you do get a package, it’s nothing but junk.

2 Medical Billing, Coding, Data Entry

While many legitimate remote medical billing, coding, and data entry jobs are available, the competition is fierce, and you need to be experienced to get one. Here’s how this scam works:

Job postings promise high hourly rates and a consistent workload – even if you have no experience. The catch is, you have to pay upfront for special software, training materials, and transcription hardware. That’s how you know you’re being scammed.

3 Business Startup Kits

Most business startup kits that promise to give you the secret to making tons of money from home are shameless frauds. Here’s how this scam works:

You might see an ad offering a proven business system. It might be real estate investment, home “flipping,” coaching, or a travel agency. No matter what the business is, the ads always promise a tried-and-tested system that can make you scads of cash working from home. Of course, you’ll be asked to pay a big fee for their software, training materials, and other services.

Once you pay, some scammers take the money and run. Others might send you some e-books and “strategies” for success, items that are hardly worth the money you’ve spent.

4 Phony Career Advancement Grants

As a job seeker, you should also look out for phony offers of a career advancement grant. Here’s how this scam works:

Fraudsters send unsolicited emails inviting you to apply for a government-funded grant to train for a degree or certification. The email address may appear to be from a government source, but it often has odd spellings or strange domains (legitimate government domains end in .gov), and the links don’t lead to any government website. Don’t respond to these messages. It’s really a phishing scam to get your personal information for identity theft.

Watch Out for These Red Flags

If you’re in the market for a remote job, watch out for these red flags that could indicate the offer is a scam:

  • Oddly written or lacking information. Be skeptical if the job listing is oddly written, vague, contains typos, or lacks basic info like the company’s name and address.
  • Big pay for little or no work. If it sounds too good to be true, it probably is.
  • No experience necessary. Be wary of ads that claim that no experience is required, especially for skilled functions like medical billing.
  • Hard-to-believe promises. Watch out for companies that promise a surefire business opportunity that will pay off fast.
  • Upfront fees. Steer clear of jobs that require you to pay upfront for training, certifications, or materials.

How You Can Protect Yourself

Here are some ways to stay safe from work-from-home scams:

  • Do your research! Read online reviews and look up the company with the Better Business Bureau. You can also search for the company plus the words “scam,” “review,” or “complaint.”
  • Don’t automatically trust employee testimonials on a company’s website. Fake work-at-home sites are full of made-up success stories from people making tons of money.
  • Don’t automatically trust online job listings even on reputable websites. It could still be a scam. If you see a suspicious job listing, report it to the job site.
  • Never pay for the promise of a job. Enough said.
  • Protect your personal information. Don’t provide your Social Security number, bank account info, or other sensitive data before you’ve received and verified a job offer.

What to Do if You’re a Victim of This Scam

Take fast action!

  • Contact your financial institution immediately if you’ve sent money or given out account info.
  • Contact the site where you encountered the scam.
  • File a report with the Federal Trade Commission at ReportFraud.FTC.gov.

When looking for remote employment, it’s best to use safe and reliable sources so you can be confident the job is legit. Remember these tips – and slam the door on work-from-home scams! To learn more about protecting your personal information or managing your finances, talk to your financial institution today.

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