6 Work From Home Scams and How to Avoid Them

The idea of working from home is very attractive for many reasons, but bad actors are always looking to lure people into handing over their hard-earned dollars. Often, they succeed because people are unaware of the warning signs.

So how do you know which WFH jobs are legit and which ones are scams? Unfortunately, it’s not always easy to pinpoint them right off the bat. But if you’re diligent and you do your research before signing up, you can spot the fakes.

According to the job experts, these are the most common types of scams.

1. Overpayment

The overpayment scam is one of the biggest ones and it can cause some serious financial downfall if you fall victim. The premise is the company will send you a check for a specified amount. You are to keep a portion of that, then wire them the remaining balance.

What always happens, and we do mean always, is the check bounces. Then, you’re on the hook for the entire amount, plus any return fees. If you are asked to cash a check, decline and immediately cease contact. If you’ve fallen victim, report it to the local authorities.

2. Phishing

Millions fall victim to phishing scams every year. It involves scammers using fake websites, emails, and other forms to get you to reveal personal information like your Social Security number and birth date. They then use this personal data for financial gain, whether it’s opening accounts in your name or selling it on the dark web.

In the job market, scammers have taken to creating fake job applications that ask for this data. If you come upon an application asking for your Social, birth date, or other sensitive information, do not fill it out. Employers only need that information after you’re hired.

3. Paying Upfront

If you are asked to fork over money to get started, whether for training or to purchase a “starter kit,” run for the hills. No legitimate job will ask you to pay money. The one exception may be multi-level marketing (MLM) companies, but even those can be sketchy.

Think about the last workplace job you had. Were you asked to pay upfront for a position? The same should be true for any WFM role, as well. There may be out-of-pocket expenses, such as internet service and/or a computer, but those are typical and not usually applicable to a single job.

4. Pyramid Schemes

Pyramid schemes are one of the OGs and despite all the new ways scammers find to con people out of their money, they still hang around.

One of the tell-tale signs the job is a pyramid scheme is if the focus is on you bringing in more people, aka recruiting, rather than doing any actual work. The idea is the more people they can recruit, the more money the scammers make, and there’s often an upfront fee to sign up.

5. Bait and Switch

The bait and switch usually happens when you find a job online that just screams you. You have the qualifications and they’re offering a great salary. Then, the ball drops.

The next thing you know, the “employer” is trying to push you into some obscure role that’s nothing like the original description. Even worse? The pay is nothing near what you expected. You have the right to speak up and to walk away in this case. During the interview, make it clear you’re only interested in the role you applied for.

6. The Unpaid Trial

This one has become increasingly popular in the technological boom era. Prospective employers post job ads to lure in applicants, and then ask them to do an unpaid trial to showcase their talents.

The catch here, though, is they never have any intention of hiring someone and only aim to get free work out of the hopeful applicants. You can avoid this by not giving free work and if you are asked to do a trial, get a contract or a statement saying you will be compensated for your time, even if it’s at a reduced rate.

Spotting the Fake Jobs

If you look very closely, you’ll notice certain red flags in the scammy jobs that con artists post hoping to part you with your money. The more you know what to look for, the easier you can spot them and safeguard your information.

Some warning signs that scream run away include:

1. Too Good to Be True

The old-age adage “if it sounds too good to be true, it probably is,” is one I live by. If you are offered an obscene amount of money for a basic job, for example, that’s a red flag. Consider the qualifications and education needed for the position. Entry-level roles rarely pay much over minimum wage.

If you find yourself thinking the job is too good to be true, it probably is, but you can dig deeper.

2. Cannot Find Information on the Company

Part of your research for any work-at-home job is to dig into the hiring company. If you cannot find any information and the company doesn’t have a website or just has a basic one with little information, that’s not a promising sign.

Look on social media to see if the company has a page and if they actively post on it. Lack of presence, especially in today’s age, should be discouraging enough. Additionally, check the email the correspondence is coming from to verify if it is from the advertised company and not from a Gmail or Hotmail address.

3. Employer Is Pressuring You

Some employers do like to impose deadlines for decisions because they need to fill roles and have a timeline in mind. However, they do not pressure you to make a decision today or within 24 hours.

If the hiring manager or contact is being pushy and demanding you sign now or you’ll lose out on the opportunity, chances are it’s not a real job. They are likely pushing you to decide to avoid discovering the true nature.

4. Reviews Posted to Warn About the Company

One other thing you can do is research the company by searching the company name + reviews. If a lot of negative testimonials pop up, consider it a warning.

If very few or no reviews pop up, that’s something you should also take into consideration, because it goes hand-in-hand with a lack of internet presence.

What Are Some Common Scam Jobs Listed?

Scammers have gotten smart over the years. They have learned how to make jobs believable and enticing. They piggyback their descriptions off of real jobs in hopes the applicant won’t notice a discrepancy.

Some of these include data entry and medical transcriptionist, two jobs real companies hire for, but often for in-office work. There are legit remote opportunities for these roles, but this is where your due diligence comes in.