Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

FTC shuts down several work at home scam companies

(Business News) The work at home scams are numerous, but the FTC has cornered a handful of them, settling for over $55.3 million. We’ll see what this means in the long run.

work from home scams

Work from home – legit or not?

Many companies, particularly tech startups, have work from home programs, wherein employees can spend all or part of their time outside of the office, and it is an increasingly popular work option. There are also jobs, again, primarily in tech, where skilled workers can earn $40 and hour.

But people continue to fall for the work at home scheme that promises them $79 and hour just for sitting at their computer, no skill required, no real work required, just breathe and be rewarded, just have $40 in your bank account and give them access to your financials, no biggie. No job that pays that well comes searching for low-level employees – they don’t need to. Well paying jobs are available for qualified candidates who reach out to the recruiting company and jump through the hoops.

bar
Regardless of how obvious some of the scams are to you and me, many people do fall victim to the work at home scheme, so the U.S. Federal Trade Commission (FTC) has shuttered several of the scams in an effort to protect consumers.

These are straight up scams

In a 2012 FTC complaint, several businesses offering “mystery shopper” jobs and other “business opportunities” were actually scams to trick consumers into joining programs that required recurring monthly charges, despite that being unclear at the onset.

This week, the Commission has settled with several of the companies and individuals named in the complaint, including Shopper Systems LLC, Revenue Works LLC (also known as “Surplus Supplier”), EMZ Ventures LLC, The Veracity Group LP, Brett Brosseau, Michael Moysich, and Keith R. Powell.

Advertisement. Scroll to continue reading.

These companies will never pony up

The total sum of the settlements is over $55.3 million, and all parties are now banned from selling “business or work-at-home opportunities,” and most are now prohibited from sending unsolicited text messages.

The FTC acknowledges that it is likely that less than $500,000 will ever be paid, as the scammers have already had their assets frozen, liquidated, or surrendered, and many of the companies are now defunct.

Three outcomes of this settlement

We suspect three outcomes: (1) going forward, the CFPB (Consumer Finance Protection Bureau) will handle these types of scams, and they’re not playing around, (2) these scammers will resurrect themselves and do something unrelated like vitamin sales or whatnot, and (3) the settlement will not raise awareness of the potential victims, rather of those around them with common sense enough to know that there is no such thing as a free lunch.

Note: About.com’s Alison Doyle has complied a useful guide to spotting and avoiding work at home scams.

Advertisement. Scroll to continue reading.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

3 Comments

3 Comments

  1. Erin Elizabeth Passons

    February 20, 2014 at 11:46 am

    Good.

  2. Pingback: Two massive robocalling rings shut down by the feds - The American Genius

  3. Pingback: Tis the season for employment scams - here's what to look out for

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business Finance

The Federal Trade Commission has Credit Karma under fire for offering false pre-approval claims to customers.

Business Marketing

We've compiled a list of the 15 most well-known MLMs to be on the lookout for...and why you should avoid them like the plague.

Business News

(BUSINESS NEWS) Desperate times call for desperate measures. Seasonal employment scams are back on the menu and here’s how you can avoid them.

Business News

(BUSINESS NEWS) Facebook is trying to avoid a fight with the government over Whatsapp and Instagram, but their leaked defense isn't that solid.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.