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How to Spot an Online Business Scam

Posted By Jim On 04/25/2007 @ 1:06 pm In Business | 1 Comment

The internet really has only been a place of commerce for about a decade now, and still people are searching to find their gold mine on the internet. A lot of people want to strike it rich, yet a lot of digital miners end up finding nothing but fool’s E-Gold. There are a lot scams for businesses on the internet, and you need to avoid them like the plague. But how does one know that a business is a scam? There are some big red flags that you will notice about a company to determine whether or not it is a scam. If a company has any of these red flags, you should be very wary about dealing with them.

If a company has no contact or extremely limited contact information, you should be worried. Most scam artists don’t want you to be able to find them after it’s a scam. If it was a real business they would give you all the contact information in the world so that you might be able to ask them questions and perhaps buy into their product if you think it’s a viable option. If they only provide you with an email address or a post office box, keep a very close eye on the business. If you give them money, there’s very little recourse you have if you cannot find them.

If the company tells you that you will make a lot of money for next to nothing when it comes to work, just ignore the claim to begin with. Everyone loves the idea of something for nothing, but it just does not happen. Making money requires hard work, a lot of hard work. Don’t fool yourself into buying into these foolish claims.

Should a company provide fraudulent association information, you know there’s a problem. A lot of scam companies will post the logos of the Better Business Bureau or another trade association to make their pitch more legitimate. You should independently verify the claims that they are associated with the BBB or other organizations. If you find out they are lying to you, get packing immediately!

When a company does not have a verifiable reference or testimonial, you should definitely stay far away. A lot of companies will have “testimonials”, however they are often times scams. Most diet pills have anecdotal testimonials, but none of those pills work. You have to be able to get references from the company about other individuals and companies who have gone through their system and been successful. Get as much information about the individuals giving the testimonials as possible, and contact them to see how legitimate the business is.

Finally, if they rush you to make any sort of decision, you know you’re in trouble. They know that if you wait long enough you might find out some information that might lead you to believe something else than the information they have been showing you. Ask lots of questions, and if they pressure you to buy in, this is probably not a place to do business with.


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