Before you invest in an Internet home based business idea, take some steps to avoid home business scams. According to the FTC, people lose over $100 million a year due to home business start up frauds which have increased each year for the last three years.

Here are some steps you can take to prevent scams:

1. Use your credit card instead of cash. It’s easier to get your money back if you are a victim of fraud.

2. Call directory assistance! If a company is not registered in the city they claim they're located in, and under the exact name they are advertising under, don't do business with them.

3. Avoid companies that accept only Clickbank and PayPal exclusively as forms of payment. All merchants that accept Visa and Mastercard usually must go through a rigorous pre-screening and background check before being allowed to accept these forms of payment.

4. Beware of exaggerated claims of potential earnings, profits, or earnings. No honest company can guarantee how much you will earn.

5. Get specific information from the company: Direct contact (not an answering machine), location, ask if they have a refund policy, customer support, resources and if possible references of active members of the business.

6. If the company refuses to give you a refund or gives you an evasive response, tell them you plan to notify law enforcement officials.

7. Check the company out with the Better Business Bureau. US National BBB.org: Find a BBB

Over 95% of the internet business opportunities are rip-offs! Don’t waste your time and money. Protect yourself and learn the steps to avoid home business scams. You can help protect others by referring this page on avoiding business scams to anyone considering to start a business from home.