| For Immediate Release | Contact: | |
| 1/12/00 | Holly Anderson, (202) 835-3323 ext.114 | |
| Tara Finck, (202) 835-3323 ext.116 |
WASHINGTON, DC-Consumers who pay for work-at-home schemes are likely to lose money, not make it, according to the National Consumers League, a nonprofit consumer advocacy organization. NCL's National Fraud Information Center, a telemarketing fraud hotline, released its top ten telemarketing complaints for 1999 today and work-at-home schemes were the number one fraud reported by consumers last year.
1999 NFIC Top Ten Telemarketing Frauds
1. Work-at-home schemes-kits sold with false promises of profits2. Prizes/sweepstakes-phony prize awards requiring payment of fees first
3. Telephone slamming- consumers’ phone service is switched without their knowledge or consent 4. Advance fee loans-empty promises of loans requiring payment of fees in advance
5. Magazine sales-fake sales or renewals for magazine subscriptions that are never received
6. Telephone cramming-billing consumers for optional services they never ordered
7. Credit card offers-phony promises of credit cards requiring payment of fees in advance
8. Travel/vacation offers-offers of free trips or discount travel that never materialize
9. Credit card loss protection-unnecessary insurance sold using scare tactics or misrepresentations
10. Investments-stocks and other investments that don’t pan out as promised
Work-at-home schemes jumped from #5 in 1998 to #1 in 1999, despite the good economy and low unemployment rate "Our consumer counselors tell us that many victims are parents caring for young children, disabled people who are housebound, and unskilled workers," said Susan Grant, NFIC director. "Unfortunately, telephone con artists have no qualms about taking advantage of vulnerable consumers by guaranteeing them big profits from working at home."
Common work-at-home schemes include:
These schemes commonly lead consumers to believe that they will receive all of the materials and training necessary to perform the work and that the company will help them find customers. "I don't know of any companies that really pay individuals to do mailings for them," said Ms. Grant. "Many envelope-stuffing schemes are nothing more than illegal chain letters."
Operating a business from home is the same as operating any business. It takes expertise, marketing know-how, and hard work, and there is no guarantee of success. "If it were as easy to make money working from home as these crooks promise, we'd all be doing it," said Ms. Grant.
For more tips on how to avoid work-at-home scams and other telemarketing frauds, consumers can visit NCL's www.fraud.org Web site. Consumers can also report suspected telemarketing fraud on the Web site or call the National Fraud Information Center at (800) 876-7060.
Top Ten Telemarketing Fraud Charts
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