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.

I think that is awesome advice. Here is what I always tell people. I love my home-based business, but realize it is not for everyone just like some businesses I looked at weren't for me. If they ask for money prior to giving information run, it is a scam. Anytime you start a true business there are going to be start up costs you can not expect to start a business for free, but you are entitled to knowing what you are going to be doing before deciding if it is for you. There are some like the one I am with that offer low start up costs and a 100% guarantee.
Brandy
Brandy Stiltner's Website

Your advice should be made essential reading for all aspiring home business operators. You manage to sumarise in so few points information that costs millions of people millions - if not billions of dollars - in total fraudulent deals.
A scam will always sound too good to be true - but we pursue it believing that somehow we won't be conned. We tend to imagine that we are better than the other people who get conned.
My simple viability test is that if a job or business promised to give you money without your incurring any effort, you should run for the hills. All genuine business is very involving and tiring. The scammers thrive on telling us that somehow we can earn without sweating - hence exploiting our greed and laziness dark longings.

Thanks so much on this helpful and very useful information. I made sure I took notes on everything you mention. One of the first things I always try to do is check out the Better Business Bureau. I often make sure I check out every possible angle to make sure I don't end up a victim of a scam. Although with that said, I was taken advantage of recently. Not sure if I should post my mishap in the Scam section.

I will say this much right now, I got billed for something I never shown an interest in getting. They found a really clever way to bill me. Should I post my mishap, and can I mention the name of the company. Actually this happened twice in the course of 2 days. Involving 2 different sites.

Yes, by all means.

Give all the necessary information including company name. This will prevent more getting scammed from this company.

Thanks,

Great advise. I always check businesses with BBB. If I can't find them, I don't deal with them.