INVESTMENT & BUSINESS SCHEMES
[Back]

Building a secure financial future is an important goal for many Americans.  This pursuit can help make individuals an easier target for criminals, however.  

Everyone would love to have a "dream" job where little effort nets huge profits. Unfortunately, most legitimate jobs require some type of skill, knowledge, or labor from the worker to ensure profits.  Be wary of "get rich quick" scheme, or scenarios in which money is not earned on the sale of a product, but on how many people you can "recruit" into a program.  Many of these scams are illegal and no one profits except the criminal.

Be cautious about newspaper ads, telemarketing calls, or road-side ads that propose some "at-home" job that can allow you to earn thousands of dollars at home.  Often, these schemes may require hundreds of dollars of "start-up" funds, administrative, or "training"  fees.  In a fraudulent enterprise, the perpetrator will tell you that these fees are necessary to send you the materials needed to perform the job, but once they receive the money, no materials arrive and they disappear. Remember: it doesn't matter how friendly, professional, or sympathetic a salesman sounds; criminals often sound very reputable.

If a business opportunity sounds legitimate and you are willing to investigate further, do some research.  Read all documents closely; it is okay to have them reviewed by an attorney before you sign.  Check to make sure this business is in compliance with state laws--do they have the necessary licenses to do what they say they do? Have there been any complaints lodged against them with state commissions of the Better Business Bureau? Research the business and the market.  Is this a marketable product or service?  Is it organized in a way as to be successful?  Do the products and principles make sense?

Don't be afraid to call references supplied by the business operators.  Call more than one.  However, be aware that a fraudulent business may have planted "singers" in their references. These are individuals who may be involved in the scheme or paid to give glowing references to a criminal enterprise. Be suspicious if you cannot reach any of the references. If you do reach them, it is important to ask them if they are happy with their investment and the performance of the promoter. Inquire to see if their investment has been successful and if they would make the same investment if they had to do it again.  Ask what has been good about the investment, and if they have encountered any problems.  Most people will want to expound on their good judgment if they made a successful investment and most will not hesitate to vent if they experienced any difficulties.

Remember:  When making an investment or starting a business, the most important step is to research the opportunity and the promoter.  Always closely consider the proposition and never hesitate to seek advice from an outside source if there are concerns.