Information technology and dot com-mania encouraged scores of workers to leave their tired old jobs and set up shop at home to create their own "wealth effect".

As sure as the cyber bubble burst, however, working at home can also prove not to be a panacea for 9-to-5 pains.

Work at home scam artists also have been busy cashing in on the new economy and the growing number of vulnerable, would-be entrepreneurs looking to get rich quick from the comfort of their own homes.

The American Association of Retired People say work-at-home schemes appeal to workers' desires for more money, no boss, fewer hours, less commuting and improved quality of life.

Unfortunately, if something appears too good to be true, it probably is.

The association says would be home-based workers should pay particular attention to these red flags and respond with hard questions.

"The work is easy" -- If the work is so easy why aren't more people compelled to work at home at this job? Most people don't work at home. While some work is certainly rewarding, most eight-hour workdays are tiring, even for the youngest workers, no matter where it's performed.

"The money will flow" -- If there's so much cash flowing, why isn't the company spending more time investing all that flow instead of beating the bushes for dupes? And why would someone share such a money-making deal instead of holding onto all that cash?

"No experience necessary" -- Check the classifieds. How many jobs come with no experience required?

"There is no investment risk" -- Your time is money. If the work-at-home job doesn't work out -- and many of them don't -- you've lost time from a real job, time that could have been used to generate an income.

"The offer is unique" -- Millions work at home. What's unique?

AARP and the Federal Trade Commission say to be on the look out for common work at home scams.

Envelope Stuffing. Send money and you'll get information about earning money stuffing envelopes at home. That much is true. You'll get instructions about how to sell the scheme to other rubes -- sometimes by direct mail (stuffing envelopes) or by placing ads in newspapers.

Assembly/Craft Work. Send money for supplies and equipment to assemble products including aprons, baby clothes, jewelry and other items. Unfortunately, your items will never meet "quality standards" and you'll likely have to sell the items yourself.

Software Sales. Send money (beginning to see a pattern?) for software to run a bill collection service from your home. The software contains an assortment of forms and collection letters anyone could design.

Business Opportunities. Send money for information about starting a home-based business. What you get are vague details with large claims about the money you'll get -- provided you buy still more training and support materials.

The Better Business Bureau says the same old scams are getting a new boost from spam, as the shysters promote their schemes online and in your e-mail box.

The bureau, along with the National Fraud Information Center offer the following tips to beat back the scams on and off line.

• Don't get suckered by promises that you can make lots of money working at home. If it was true everyone would work at home. A business is a business. It requires goods and services in demand, the skill to sell them and time to make it all pay off.

• Get it in writing. Don't pay a dime until you have written documentation of what the work will entail -- which is often quite different from what is promised. Likewise, get in writing and in advance, any promise of a refund, buy-back, or cancellation policy should the gig not pan out.

• Determine if there is indeed a market for the goods or services you'll provide. If the promoter says he has customers or clients for you, ask for their contact information before you send money. Watch out for ringers.

• Beware of legal requirements. Some work in some states require a license, certification or other documentation proving you've attained certain skills. Also determine if your local zoning ordinance allows you to work from your home and what kind of work zoning permits. It's often illegal to perform certain hazardous and heavy manufacturing work at home.

• Avoid seminars that promise to make you money. They are often high-pressure sales pitches for over-priced motivational materials, software that's largely worthless or information that is likely otherwise free for the asking.

• If the pitch includes the statement "This is perfectly legal," it probably isn't. Legitimate business people don't have to spend time reassuring anyone that what they offer is legal, says the U. S. Postal Inspection Service, which also offers information about Work-At-Home schemes.

For more articles by Broderick Perkins, please press here.

Published: January 25, 2002

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