My general rule of thumb to avoid work-at-home scams is very simple:
If someone asks you to give THEM money, it’s a scam.
Anything that requires a “start up fee” or a “beginner’s kit” is usually a huge red flag. Another, less obvious one is when “companies” ask for loads of personal information (Social Security number, bank accounts for “direct deposit”, home addresses, etc.,) without officially hiring you or asking you to fill out a W-9 or other tax paperwork first. However, some work-from-home scams are a little sneakier and harder to detect. To make sure your identity (and your money!) is fully protected, read this post by Bethany Ramos at The Work at Home Woman:
Be extremely skeptical of:
-Outrageous claims: Any business opportunity that claims you can make $1000 per day is simply not true. When it comes to too-good-to-be-true opportunities, they are just that. (One of my friends recently joined a company that I’m almost positive is a huge pyramid scheme. She was CONVINCED that she and her husband would be making millions of dollars a year, and would be able to retire in two years. She’s 23.)
-Craigslist Ads: Just be wary of Craigslist in general. Reputable companies tend to have their own websites where they post freelance opportunities, and will not use Craigslist.
-Pyramid Schemes: Generally what happens is, an individual pays a certain amount of money to be part of this so-called opportunity, but then to make any money they need to recruit other individuals to pay in and get involved with the opportunity. ( Back to my friend from earlier: she kept being extremely pushy and trying to get me involved with it so she could recruit more people. After talking with mutual friends, we realized she had been doing the same to all of us. The more recruits she got, the more money she makes. Sorry for her, but none of us were buying it.)
To sum things up, if something gives you an icky feeling, avoid it. Use your critical thinking skills and follow your intuition.