Before you invest in an Internet home based business idea, take some steps to avoid home business scams. According to the FTC, people lose over $100 million a year due to home business start up frauds which have increased each year for the last three years.

Why do so many people fall prey to online scams when the percentage of legitimate home business opportunities is very small? One of the reasons is that most people tend to react emotionally instead of making an informed decision. In addition, many people need extra income and are looking for a quick or easy solution. Finally, most of these rip-offs require a small fee, small enough to take a chance.

Remember there is no such a thing as a get-rich-quick business to start from home. If it sounds too good to be true, chances are it’s a scam!

Avoid Home Business Scams with These Steps

1. Use your credit card instead of cash. It’s easier to get your money back if you are a victim of fraud.

2. Call directory assistance! If a company is not registered in the city they claim they're located in, and under the exact name they are advertising under, don't do business with them.

3. Avoid companies that accept only Clickbank and PayPal exclusively as forms of payment. All merchants that accept Visa and Mastercard usually must go through a rigorous pre-screening and background check before being allowed to accept these forms of payment.

4. Beware of exaggerated claims of potential earnings, profits, or earnings. No honest company can guarantee how much you will earn.

5. Get specific information from the company: Direct contact (not an answering machine), location, ask if they have a refund policy, customer support, resources and if possible references of active members of the business.

6. If the company refuses to give you a refund or gives you an evasive response, tell them you plan to notify law enforcement officials

7. Check the company out with the Better Business Bureau.

Besides the previous ideas, home business scams can be prevented by getting more information from the following organizations:

• Your local Better Business Bureau.

• U.S. Postal Inspection Service.

• Scambusters, at www.scambusters.or

• Your local or state consumer affairs agenc

• Federal Trade Commission at 202.382.435

• National Fraud Information Center at 1-800-876-706

A real home based Internet business will not pressure you and allow you to go at your own pace, review the company, and decide if the opportunity is right for you. NOTE: Even legitimate home business sites may suggest that you invest money, but will not cancel you if you don't.

You can help protect others by referring this page on avoiding business scams to anyone considering to start a business from home.

WARNING! - 95% of the online income opportunities are scams. Don’t be the next victim! Learn how to avoid home based business scams and start a business from home.

Author's Bio: 

Sergio Ferreira's web site provides information on how to avoid home business scams, choose the best legitimate business opportunities, articles and resources to help you start a business from home. He's offering a free e-book “The Affiliate Masters Course”. A step by step guide to help you succeed as a high-earning affiliate. Click now for your FREE e-book!