Everyone I know is interested in starting a home based Internet business, or an online business, which would bring them an extra supplementary income. However, how many of us know that for every Internet business there is, there are scams too that cause the owner to crash out? What are these, and how does one go about being careful about them?

Recently, the FBI reported that web based frauds and scams have multiplied over the past few years, and that the most targeted are those people who have invested their money in a semi automated or fully automated ‘making money from home businesses’. Scammers target work-at-home individuals, as well as home based Internet businesses, and while the former may include asking users to pay a registration fee to start ’stuffing envelopes’, or ‘assemble crafts’, so that you become an employee of the company, and the company pays you for your work, the latter involves the company offering to ‘help’ you start your home based Internet business, where you can become a networker, or a marketer.

You may think, how can these Internet business scams be so successful? Why would anyone fall for these scams? The truth is that these scammers target specific groups, like for example, the elderly and the retired, stay at home moms, families with no incomes, and individuals who want to ‘make money quick’. Take for example the Internet business of crafts assembly. The user pays a fee, gets his kit, and he makes dolls and toys at home. However, when he sends it to the company, he is told that the product does not meet their specifications. This is nothing but a scam! Another clear home Internet business scam is that of ‘typing at home and making good money’. After you pay the fee, you receive a CD, and a set of instructions telling you how to place these same adverts, so that someone else falls into the scam, just like you did! Yet another Internet business scam is that of the famed MLM, or the so called ‘Multi Level Marketing’. Although it may be true that some legitimate companies do use this, others concentrate efforts on ladder climbing alone, and not on the actual marketing of products and services. What is even worse about this particular scam is that the Federal Trade Commission may find you, yes, you, guilty of committing fraud, and award you a hefty fine. Sending and receiving chain letters is yet another scam. This involves sending an email, and also some small amount of money to all the names on the top of the list that you have received, and then putting your own name at the bottom of the list. The promise is that one day, you will receive the money, and become a millionaire! Not only is this illegal, but it has also been banned, and you could be arrested for fraud. The envelope stuffing scam is one of the worst scams of all, and it has probably been around from the 1920’s onwards! You register with the company, send them the money, and you start stuffing envelopes. You are guaranteed a payment of $1 to 2 for every envelope you stuff. You receive form the company an envelope stuffed with flyers that you have to put up, advertising an Internet, home based business. When people respond, they send you $2 in an envelope, and on and on it goes. Not only is this illegal, it is also a crime.

The next time, please pay careful heed to all the scams that I have listed out for you, and only then, get into any home based, making money online, or an Internet based scheme, guaranteed to bring you fast bucks! Beware, or you could end up losing a lot of money, and also being fined for fraud and scam.