Spotting Opportunities Among Scams

Do I have a deal for you!

Why are scams increasing?

Increase in the number of Micro-Businesses• 2000 – 22,931,777• 2007 – 27,361,179

From 2000 – 2005, new businesses starting with 1 – 5 employees grew at an average annual rate of 4.5%.

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Spotting Opportunities Among Scams

Watch out! You could:

• Lose money• Damage your reputation• Risk legal investigation• Lose valuable time

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Spotting Opportunities Among Scams

Watch Out! Be Skeptical of Statements…

• “You can earn hundreds of $$$ working from home in your spare time!”

• “Only $29.95 will bring you thousands in earning power!”

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Spotting Opportunities Among Scams

Scamming Opportunities

• Assembly or craft work• Envelope stuffing• Internet-related• Medical billing• Multilevel and pyramid marketing

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Spotting Opportunities Among Scams

Scamming Opportunities

• Scams against businesses• Seminars• So-called franchises• Vending machines and display racks• Wealth-building

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Spotting Opportunities Among Scams

Business Opportunity Checklist

• Check out promoter• Don’t judge a company on appearance• Ask for disclosure document• Watch for pyramids• Verify claims in person

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Spotting Opportunities Among Scams

Business Opportunity Checklist• Get it in writing• Realize they are there to “SELL”• Avoid making high-pressured decisions• Check out sales, profits, and income claims• Seek professional advice• Be skeptical about “get rich quick” opportunities

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Spotting Opportunities Among Scams

Remember:

If it sounds to good to be

true then it probably is!

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Spotting Opportunities Among Scams

Information and Assistance

• Federal Trade Commission• United States Postal Service• National Consumer League• National Fraud Information Center• Better Business Bureau• State Agencies

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Spotting Opportunities Among Scams