Monday, June 23, 2008

Home Based Jobs, Get Rich Quick Schemes & Scams

Kiran Kumar, CEO, , a Foreign Exchange Trading company shares a very informative piece on Scams and how to avoid getting caught in the scam web

Congratulations: you have inherited $ 12 million. Let me hear from you URGENTLY by my private e-mail address:
How many times have you seen such e - mails in your inbox? Though we know that even a known person will not give Rs 1200 for no reason but in our heart we want to believe this stranger now dead in some far away country who of all the people in the world thought of leaving $ 12 million for you. Let's think hypothetically, even if this were true, will the person who is sending you this mail, choose to reveal such important information merely through an email. Won't he come and meet you personally and give this good news? Many of us sensible people just ignore this and laugh it off as a wishful thinking but still there are some who believe this and go all the way replying to the mail and enquiring details about it and ultimately falling into the trap. Before the better sense prevails to them and they realize that it was a fraud, much harm has already been done and instead of recipient of the email getting any money, he realizes that he has lost not only his peace of mind but also some money in the transit. Adding one more to the list of scams is internet scam. These scams originate in various forms but the objective of all the scams is to extract as much money from you. These scams clearly state that the transaction is absolutely clear and you need not pay anything but as you start communicating with them and getting into their trap, you end up paying a few thousand dollars as a courier charges or agent's fees. 'After all what's the harm in paying $10,000 as courier charges when you are getting $12 million', one may think. Many well educated people who are computer savvy and are well versed with evils of internet have succumbed to the pressures from internet. Perhaps the thought of getting rich in a jiffy is too strong that we lose our common sense and see no harm in trying. The modus operandi is same in all these scams. They never ask for money in the beginning. Once you start communicating with them, they say that they have sent money through an agent and you will have to pay the courier charges. People who believe, send the money for the courier. It may end there or they may start getting demand for more money for various reasons. "In one such incident, a client of mine showed he has 36 million dollars in his bank account in first caveman bank. It took me few minutes to find out there is no such bank" tells Kiran Kumar, CEO, Forexveda.comRecently CNN IBN reported about a girl in Delhi who stole a few lakhs from her company to pay those Nigerians who lured her in to an internet scam. She was later arrested by the police.Most of the Home based Jobs, get rich quick schemes and Internet scams fall under one category. If it was so easy to earn Rs 15,000 in a month by working for just two hours, all the organizations adhering to eight hour working shift will close down. Why only internet, newspapers are loaded with advertisements about getting rich quickly, work two hours a day and earn Rs 20,000 in a month. Internet is a place where you find thousands of get rich quick kind of schemes. People who don't understand the work from home concept still fall prey for these schemes.
Earning money through GoogleOne can advertise in Google as well as become a Google partner and let companies advertise in their websites. One has to have high traffic to the website/webpage and each click on the advertisement gets them a small money. Search engines are smarter than we think, before giving us money these search engines make sure that the clicks are genuine. This is again not the right way of earning money online and people end up paying money to middlemen who promise to teach them the tricks. If these clicks are fake, it is possible for them to track it down. The penalty can be cancellation of your account. Network Marketing
Network marketing is another way of earning money but selling is not everyone's cup of coffee. These are called MLM or in people's lingo 'chain schemes' 90% of the people who join these schemes lose money because they fail to sell these schemes to their friends.
Day Trading in Stock market
I was surprised when I read some investment advisors recommending day trading in stock market as a good work from home /home based business opportunity. In day trading mostly brokers make money through brokerages. Most of the day traders lose money in day trading. Online trading is one of the toughest professions and one must be very careful in investing in day trading. Do not trust people who only talk about profits, but not risks associated with the trading.
Mutual Funds and Unit Linked Insurance Products
Investments in Mutual funds and ULIPs are exposed to risk as the asset management companies invest your money in the stock market. Recently a well reputed insurance company collected crores of rupees from the market for their insurance scheme. Company did not offer high returns but their agents did. People invested money going on the verbal assurances from the insurance agents. The tip is to ask the agent to give their promises in writing before trusting them and investing their hard earned money. Be an Insurance agent is another way to earn money.
Most of the Insurance companies find it easier to sell their products by recruiting large number of insurance agents. They advertise like this " Be your own boss. Work 2 hours a day and earn more than Rs. 20,000 a month" People are lured into this profession by development managers with attractive commissions and renewal commissions. Insurance companies have appointed more than 20,000 insurance agents in Mysore alone. Those who join as insurance agents manage to sell few policies within their circles. Most of them drop out in the 2nd year as they exhaust all their contacts in the first year. These people don't even earn their renewal commissions. They cannot go to court to demand renewal commissions as they don't get anything in writing from these Insurance companies about renewal commissions. When you join as an Insurance agent, ask the company to give you the commission structure in writing. Some companies give the proposal letter in their letter head but commission structure will be on a plain white paper. This holds no good when you try to demand the renewal commissions.
It does not mean that anything mentioned on internet about earning money is fraud. Internet provides ample opportunities to make money but one should know how to make use of it. One must use common sense while getting in to these kind of schemes. Schemes try to get members by showing few examples of people who have made lot of money. In the days of online learning, learning about how internet can be used to your advantage is child's play. “People with good understanding of the internet can surely make lot of money but there is no get rich quick scheme in Internet. One has to really work hard to make money. People with just one or two hours of spare time a day shouldn't venture into online business expecting huge income” - says Kiran Kumar
Internet is not good or bad as far as earning money is concerned. It is up to you how you use it to your advantage or disadvantage.

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