Likely you have seen many advertisements for home business scams that seem too good to be true. Each year people fall for these scams and millions of dollars are lost. Many of these scams are aimed at individuals such as stay at home parents, unemployed individuals, the elderly, disabled and those with low incomes. However, you can avoid these scams by learning to tell the difference between a legitimate home based business and a scam.

The first hint of scam is always when the offer seems to be too good to be true. Always remember that if it seems like the best deal you have heard then it likely is not going to be true. If an opportunities claims you can make a whole lot of money within a very short amount of time it is likely a scam and should be avoided no matter what.

Another clear indicator that you are dealing with a con artist is when they ask for money up front. While home businesses will commonly need money invested up front, the legitimate companies will never ask you to pay them just to hire you. If you are going to pay for an upfront fee it is best to use a credit card and not cash since a credit card offers an easier way to get your money back should the opportunity be fraudulent.

Never feel like you have to respond immediately to an offer. Rather take your time to research the company and make your final decision. Taking you time will also help since a company that tries to force you into making a decision is likely going to show you that they are not a good business to deal with. Go to the better business bureau and make sure no claims have been filed against them. If the company has no telephone number or uses a P.o.box then, you should stay away from them since these are good signs they are not legitimate companies.

Also before signing with a company ask them for a detailed refund policy in writing before you join. Always be on the lookout for the common scams. The opportunities that ask you to call a 1 800 number to get more information are scams since you will have a minimum thirty five dollar charge for making the call and part of that goes to the person running the scam. Other common home based business scams that you should avoid include envelope stuffing, product,craft assembly, pyramid schemes, medical billing, type at home and unsolicited emails and internet schemes.

If you become a victim of a scam then you should try to contact the business first and ask for a refund. If this does not work then you should notify them that you will be contacting the law enforcement officials. Then it is best to contact one or more of the followings. The federal trade commission, the better business bureau, the attorney general in your state or the U.S. postal inspection service.