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Job seekers targeted by work-from-home scams

By Elliot Wright, 17th February 2010

Work from home scams have become one of the most common cons in Britain as fraudsters target the vast number of jobseekers.

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One in four adults has been contacted by work from home scammers at some point in their life, according to a survey by the Office of Fair Trading as part of their Scams Awareness Month campaign.

Work from home scams are attempts to swindle money from job seekers by offering so-called profitable business opportunities or start-up advice. The survey shows that 17% of the adult population in the UK has been targeted in the last year, and the incidence of such scams is rising.

The work from home scam typically operates by advertising paid work from home in a local newspaper, shop windows, online classified ads or even on a lamppost offering the promise of fast cash for minimal effort.

The catch is that you have to pay upfront fee to the organiser, for example, for materials of for them to reveal their "secrets". They take your money but are unlikely to pay you for any work you do, or you may find that there is no work and instead only commission for getting other people to sign up.

People who are struggling financially may be particularly vulnerable to these types of scams.

Heather Clayton, Senior Director of the Office of Fair Trading's Consumer group, said: "We are seeing an increasing volume of work from home and business opportunities scams. People who are struggling financially may be particularly vulnerable to these types of scams. 

Genuine work from home schemes should tell you in writing exactly what you will be expected to do, how much you will be paid and how and when you will be paid."

The OFT-managed advice service Consumer Direct offers the following advice about how to protect yourself from home or business opportunity scams:

  • If you reply to a job ad and are asked for money in advance, walk away.
  • Before signing up to a work from home scheme, find out as much information as you can.
  • Do a web search on the company and ask to speak to current workers.

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