Maybe you have now decided to work online from home or are already doing so.
A sad fact of Internet life is that you would come across scams. This post is to help you recognize and avoid them.
Need a little more detail? Check Summarily list of signs showing if a company is legitimate or not
Want to check the full article? Click to read Signs which show that a company is legitimate
Christine Durst, cofounder of RatRaceRebellion.com and consultant to the FBI on internet scam issues said, “There is currently a 61-to-1 scam ratio among work-at-home job leads on the internet.”
That is, for every legitimate company, there are 61 scams! Discouraging, isn’t it?
So it pays to be vigilant at all times when purchasing products or services from companies using your personal details.
You should do as much research as you can about the trader and their business.
This piece is to help you do so.
Fortunately, the following 8 indications are very powerful in throwing up red flags. Use some or all of them to protect yourself from falling victim to a SCAM.
Check the Company’s Registration Status
Federal Employer Identification Number
Australia Business Number Australian Securities and Investments Commission (ASIC).
For all other countries, Google for their national company registration processes for more details.
The UK FCA register: FCA register
Membership of Associations
Membership of Regulatory bodies
Permits, Certifications or Licences
Government departments and agencies responsible for business and consumer affairs
For US/Canada – The Better Business Bureau
For UK – Company’s House Website Companies House website
For Australia – A.B.N. (Australian business number) Business.gov.au.
ABN Lookup function. ABN Lookup
The following websites might also have information about a trader registered in Australia:
Click here for issue warnings
For India – Ministry of Corporate Affairs
For all other countries, Google to find out the authority website.
Check the Company’s Contact Details
Check the Company’s Website
For new or about to expire domain WHOIS lookup service
For discrepancies and lack of professionalism
For refund and exchange policy
For same business page for another city
For the legal Web Pages
Terms and Conditions
Disclaimer & Disclosures, etc.,
For the configuration of the payment gateway
Check the Company’s Payment Methods
Consider how the company accepts payments
Seek Feedback about the Company
Check in the search engines
Ask your network
Seek a referral
Check in the community
Check customer reviews on review platforms
Check credit reports
Check Trading Standards: (UK) Trading Standards
1. Visit the Company’s Office
2. Trust your Sixth Sense
3. More Pieces of Advice
Wikihow: Check if a company is genuine
- When you look up reviews, be smart about whose reviews you trust.
· A from home business, or a really small company, may not have business listings or long-lasting domains.
· Keeping the information of the domain owner private does not necessarily mean it is a scam.
- If you’re unable to find sufficient information on a company, ask around. (try business rating sites or related and post on their forums about the company)
- If they have a phone number, call.
- Try and stick with popular, proven on-line businesses.
- If the merchant has a brick-and-mortar store, it is more likely to be legit. If possible, visit the store once.
- Be careful with your information. If it sounds too good to be true, assume that it is.
- Some tools may not be available for things outside of America.
- People have been scammed out of millions. Be careful.
- Research any company before you invest money or purchase goods from them.
- Watch out for instant money schemes.
- c. More ideas
· Only deal with people in your area.
· Don’t wire funds (Western Union, Money Gram, etc.).
· Beware of fake cashier’s checks and money orders.
· Beware of identity theft. Don’t share your private info.
· Use caution when accepting relay calls from the hearing and speech impaired.
· Avoid shipping and escrow.
· Avoid deals that are too good to be true.
N.B.: This information is fromaccc.gov
Not all traders are genuine
- Authorisation to operate does not guarantee honesty.
- Business cards, registration numbers, etc. do not necessarily prove a business legitimate.
- If you are in any doubt, do some research and verify any information.
Do you know of any other signs which show that a company is legitimate or not? Or, do you have any other comments to make?
Just scroll down to the comment box and let’s hear from you. Thanks.
Your personal guide to securing your future online
Do you want to read the whole article? Click to see Signs to show if a company is legitimate or not