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Business opportunity fraud
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Business Opportunity Fraud
Want to "be your own boss," "work from home," or just "make extra money"? Before you open your checkbook, check out the offer. Fraudulent business opportunity promoters use the classifieds and the Internet to tout all kinds of offers, from pay phone and vending machine routes to work-at-home businesses like medical billing and envelope stuffing. Too often, these ads make promises about earnings, locations, merchandise, or marketability that sound great, but are not truthful. The result is consumers are ripped off, losing money instead of making it.
Be wary of these signs before proceeding:
Pressure to sign a contract immediately
Promises of extraordinarily high or guaranteed profits
Claims that profits can be achieved easily or with little work or time investment.
A required initial investment that greatly exceeds the fair market value of any products, kits or training.
A large fee payable before you receive anything in return.
Evasive answers by the salespeople or unwillingness to give disclosure documents required by law.
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