Work-at-home pandemic scams and phony investment offers have soared, raising people’s hopes then stealing their money. Here’s how to spot the red flags and protect yourself.
Once again, the lowlifes among us have found more ways to prey on other people’s misery. Work-at-home pandemic scams and phony investment opportunities have soared, raising people’s hopes then stealing their money, according to a recent report from the Federal Trade Commission (FTC).
“Scammers have been even bolder during the COVID-19 pandemic,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection in a call to the media.
“So many of us are unemployed or underemployed, stuck at home and badly in need of income. In fact, the number of income scams reported to the FTC reached the highest level on record in the second quarter of 2020. These scammers are taking advantage of a desperate situation to rip money from the hands of those of us least able to afford it.”
1 Broken Promises
The agency has already initiated legal action against many of these pandemic scams. Some scams the FTC recounted were imaginative, wide-ranging, and even outlandish.
For example, one group of companies used robocalls promising people lucrative work as Amazon affiliates, according to the FTC’s Bureau of Consumer Protection. The script read: “Amazon recognizes the health concerns concerning the coronavirus. Amazon is offering you an opportunity to work from home as an Associate member and make up to $400 a day.”
In reality, “These companies charged people hundreds or thousands of dollars and left them with nothing but a badly designed website,” Smith told reporters.
Another targeted Latina victims, telling them they could work from home reselling luxury products such as brand-name perfumes. Ads in Spanish on California-based TV stations ultimately scammed consumers of more than $7 million. The scammers targeted “Latina consumers in the midst of the COVID-19 health and economic crisis... seizing on economic insecurity in the community,” the FTC complaint said.
Other typical pandemic scams that prey on people’s financial desperation range from...
fake job offers
phony investment or pyramid schemes
fake-check scams
Targets receive bogus checks to deposit in their bank accounts. They’re then asked to return some of the money, usually in the form of a gift card.
2 Warning Signs
The classic red flag is any offer that sounds too good to be true. Whether for a dream job or an astonishing return on your investment, lofty promises usually mean trouble.
The most popular employment scams continue to be those offering to let people work from home. It’s so easy with the Internet to create a false persona. The FTC shows over 400 results when searching for “job scams.”
Here are some of the most popular:
job offers for which you have to pay a fee;
job offers that require personal data (social security number, bank account, etc.)
helping a company transfer funds elsewhere;
job interviews using IM accounts; and,
job placement services.
3 Other Red Flags to Watch
Up-front “investments” The number-one warning sign of an employment scam is a requirement to pay the company money. They often disguised this as a “registration fee,” a “training fee,” or a “materials fee.”
Large checks A company may send you money to deposit in your checking account, and then send on to someone else or even return to the sender. You find out days later that the check you deposited is worthless, and you’re out the full amount.
Time pressure “High-pressure sales pitches are always a big red flag,” Smith warned. Any offer that requires you to sign up immediately, or pitchmen who answer questions evasively is fake.
Amazing success stories “Our experience shows us that glowing [testimonials] can be fake, and online reviews can be made up,” Smith said.
Other warning signs “If anyone is asking you to send them gift cards, to purchase something, to pay for something, or to reimburse money they deposited in your bank account, it’s a scam,” Maryland’s Attorney General Brian Frosh told reporters recently.
4 Protect Yourself
If you come across a financial opportunity that seems suspicious, do your research before investing a penny. Type in the company’s name followed by “scam” to see what others have reported about the offer or the company.
And double-check with the Better Business Bureau (BBB) and the FTC to find out whether the offer is legitimate.
If you’ve been scammed, report it to the BBB, the FTC, your state’s attorney general’s office, and local law enforcement. And don’t hesitate to warn others. Use your social media network to alert people who may have seen the same posting and could be taken in.
One offer that is legitimate is BILLSHARK’s promise to review your bills for free. We’ve been featured in Forbes and the Wall Street Journal, and on CBS News and the NBC Nightly News. Our professional negotiators know how to find you hidden savings, and we charge only if we can save you money.
Share:
Billshark · Bill Negotiation Experts Helping consumers and small businesses stop overpaying on recurring bills.
Frequently Asked Questions
What are the most common pandemic work-from-home scams?
According to the FTC, the most common pandemic scams include fake job offers, phony investment or pyramid schemes, and fake-check scams. Popular work-from-home schemes include job offers that require a fee, offers that demand personal data like your Social Security number or bank account, requests to help transfer funds, job interviews conducted over IM accounts, and bogus job placement services.
What is the number-one warning sign of an employment scam?
The number-one warning sign is a requirement to pay the company money up front. Scammers often disguise this as a “registration fee,” a “training fee,” or a “materials fee.” Any legitimate job will pay you, not the other way around, so a demand for payment to get hired is a strong red flag that the offer is fake.
How does a fake-check scam work?
In a fake-check scam, targets receive bogus checks to deposit in their bank accounts. They’re then asked to return some of the money, usually in the form of a gift card. A company may send you money to deposit and then have you send it on to someone else or return it to the sender. Days later you find out the check was worthless and you’re out the full amount.
How can I check if a financial opportunity is legitimate?
If an opportunity seems suspicious, do your research before investing a penny. Type the company’s name followed by “scam” to see what others have reported. Double-check with the Better Business Bureau (BBB) and the FTC to confirm whether the offer is legitimate. Be wary of any offer that sounds too good to be true or uses high-pressure sales pitches.
What should I do if I’ve been scammed?
If you’ve been scammed, report it to the BBB, the FTC, your state’s attorney general’s office, and local law enforcement. Don’t hesitate to warn others, too. Use your social media network to alert people who may have seen the same posting and could be taken in by the same scheme.
Beware Pandemic Work-from-Home and Investment Scams page context
Beware Pandemic Work-from-Home and Investment Scams is a Billshark page. It can help you with your bills and your choices, and it can show you how to save.
Pandemic scams target job seekers and investors. Learn the FTC red flags for work-from-home and fake-check fraud, and how to protect your money today.
Use this page to learn about Billshark. Then go to the part of the site that fits what you need. Small steps add up. You can save a lot over time.
We share this page to help you make sense of your monthly bills, your choices, and what to do next. Keep this page handy. Ask us if you get stuck.
This page links you to more help from Billshark. Use it when you want more detail or a clear next step. You can save a lot over time.
Got a question about a bill you pay each month? This page can help you find the best answer. Read on to learn more. Small steps add up.
Read each part of this page at your own pace. If you need more help, go on to a guide on your topic. It is free to read. Keep this page handy. Ask us if you get stuck.
We put facts and tips in one place. This makes it easy to learn about the bills you pay at home. We are here to help. It only takes a few minutes.
This page can help with real questions. You can learn about your plan, your account, and what you pay each month. Small steps add up. You can save a lot over time.
Use the menu and the links to go from a big question to the facts that fit your own needs. Keep this page handy. Ask us if you get stuck.
We keep things short and clear so you can choose well. You can then read more if you want to. It only takes a few minutes. You are in the right place.
The links on this page help you weigh your choices. They also help you see what you pay and what to do next. You can save a lot over time.
Our goal is to help you spot the bills you pay each month. We also share smart ways to keep them low. Ask us if you get stuck. Read on to learn more.
Come back to this page when you have a new question. It will still be here to help with bills and savings. You are in the right place. It is free to read.
We link the small choices you make each day to the big picture. That means your budget and what you spend at home. We make it easy for you.
Each part of this page helps you see what you need. It may be help with a plan, your account, or a good read. Read on to learn more. Small steps add up.
Use what you learn here to plan your questions. Look at your choices, then take the next step when you are ready. It is free to read. Keep this page handy.
Our pages link to each other. That way, you can find more help and still keep track of what you came for. We are here to help. It only takes a few minutes.
This page makes it easy to find the key facts first. Then you can pick a plan or make a change with less stress. Small steps add up. You can save a lot over time.
Good facts help you see why a bill went up. They also show you what to check before you call or reply. Keep this page handy. Ask us if you get stuck.
This page puts the key facts in one place. It can help you talk with a company about your bills and how to save. It only takes a few minutes. You are in the right place.
Our other pages explain the words you see on a bill. They also help you weigh the pros and cons of each plan. You can save a lot over time. We make it easy for you.
Our tips focus on real choices you can make. Start with the basics, then read a more detailed guide if you need one. Ask us if you get stuck. Read on to learn more.
This page is one of many that we share. Together they cover home costs, the firms you pay, and how to get help. You are in the right place. It is free to read.
Take your time and read this page first. It helps you see your choices and find out what to read next. We make it easy for you. We are here to help. It only takes a few minutes.
We set this page up so you can compare and keep reading. You will not need to hunt for what you want. Read on to learn more. Small steps add up. You can save a lot over time.
Monthly bills come with rules, terms, and fine print. This page helps you find the parts that count for you. It is free to read. Keep this page handy. Ask us if you get stuck.
Our pages give you a clear view of what you pay each month. You can then pick the plan or guide you want. We are here to help. It only takes a few minutes.
Some of our guides cover the basics. Others go into detail on one company or one type of bill. Small steps add up. You can save a lot over time. We make it easy for you.
It pays to read first and act later. This page links you to the next guide if you want to learn more. Keep this page handy. Ask us if you get stuck.
We share guides that help you make sense of your bills. They show your choices and the best next step. It only takes a few minutes. You are in the right place.
Want more detail on a bill, a plan, or your account? Check this page against the links we share here. You can save a lot over time. We make it easy for you.
We group our pages by topic to keep things simple. This helps you stay on track as you read about your costs. Ask us if you get stuck. Read on to learn more.
A bit of background goes a long way. It helps you spot what counts before you check a bill, change a plan, or call us. You are in the right place. It is free to read.
This page is part of our help library. It gives you clear facts and links so you can keep on reading. We make it easy for you. We are here to help.
Your needs can change, so come back any time. Our other pages can help you look into a new cost or plan. Read on to learn more. Small steps add up. You can save a lot over time.
We laid out this page to help you get the facts and compare them. You can then choose your next step with ease. It is free to read. Keep this page handy.
Work-at-home pandemic scams and phony investment offers have soared, raising people’s hopes then stealing their money.
Once again, the lowlifes among us have found more ways to prey on other people’s misery.
“Scammers have been even bolder during the COVID-19 pandemic,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection in a call to the media.
The agency has already initiated legal action against many of these pandemic scams.
For example, one group of companies used robocalls promising people lucrative work as Amazon affiliates, according to the FTC’s Bureau of Consumer Protection.
In reality, “These companies charged people hundreds or thousands of dollars and left them with nothing but a badly designed website,” Smith told reporters.
Another targeted Latina victims, telling them they could work from home reselling luxury products such as brand-name perfumes.
Other typical pandemic scams that prey on people’s financial desperation range from.
The classic red flag is any offer that sounds too good to be true.
The most popular employment scams continue to be those offering to let people work from home.
Here are some of the most popular.
Up-front “investments” The number-one warning sign of an employment scam is a requirement to pay the company money.
Large checks A company may send you money to deposit in your checking account, and then send on to someone else or even return to the sender.
Time pressure “High-pressure sales pitches are always a big red flag,” Smith warned.
Amazing success stories “Our experience shows us that glowing [testimonials] can be fake, and online reviews can be made up,” Smith said.
Other warning signs “If anyone is asking you to send them gift cards.
If you come across a financial opportunity that seems suspicious, do your research before investing a penny.
And double-check with the Better Business Bureau (BBB) and the FTC to find out whether the offer is legitimate.
If you’ve been scammed, report it to the BBB, the FTC, your state’s attorney general’s office, and local law enforcement.
One offer that is legitimate is BILLSHARK’s promise to review your bills for free.
According to the FTC, the most common pandemic scams include fake job offers, phony investment or pyramid schemes, and fake-check scams.
The number-one warning sign is a requirement to pay the company money up front.
In a fake-check scam, targets receive bogus checks to deposit in their bank accounts.
If an opportunity seems suspicious, do your research before investing a penny.
Billshark negotiates your bills for you — no savings, no fee.
Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.
Our experts handle providers for customers and share updates throughout the process.
Customers pay only when Billshark finds savings on eligible bills.
3 Other Red Flags to Watch.
Frequently Asked Questions.
What are the most common pandemic work-from-home scams?.
What is the number-one warning sign of an employment scam?.
How does a fake-check scam work?.
How can I check if a financial opportunity is legitimate?.
