As an entrepreneur running a small or home-based business, you should know the risk of scams at https://www.scamrisk.com/. This is not to say that all scams are bad and should be avoided. In fact, many legitimate companies have had problems with fraud. But before one gets involved in any business venture, he or she should do their research and understand the risks of the venture. This can help them decide if it is worth it.
When you research a company, what do you find? First, you will learn about the background of the company and the history of the owners. You will also learn about the products or services they offer, the customers that they serve and how much support they provide.
All of this information may be important, but none of it will help you if you cannot compare it with other companies. For example, there is no point comparing your own company against that of a company with 20 years of fraud under its belt. There are so many factors that are similar that you will be comparing apples and oranges. This may lead to inaccurate conclusions or worst, a calculated decision to avoid risk.
Do you need to do your homework before you sign up for a program or a service? Of course you do. You may even have done some risk assessment already, by comparing your resources and finances to that of your potential clients. But some frauds are just too sophisticated to check by just looking at the numbers. Here are a few examples of what constitutes fraud:
o A company that never existed. Some people have created businesses where they claim they have a physical location when in reality it is a virtual office. They can take money from your account and run off with your money. Other types of scams involve a pyramid scheme in which there are only two levels of participants. At the top, there are big shots with big salaries. At the bottom are regular people with no money who get lured into the scheme.
o Using someone else’s name. When you see the name of an established business, do a little research on the person behind it. Do you know that there are dozens of similar names for the same business? If you think the person has the right credentials, he could just be using your own name and information to start a new business.
o Network marketing. Scam artists know how to reach out to vulnerable people through multilevel marketing schemes. They may offer commissions that sound too good to be true. Some companies have even advertised that all you need to do is recruit others and the business will take care of itself.
There are many different factors that play into making a business a scam risk. If you want to protect yourself, do your homework. Compare the risks associated with different companies and choose the one that has a lower risk level.
Companies should disclose their risk information. The Better Business Bureau makes this information available online. You can also look up your state’s attorney general to find a list of fraud lawyers. All reputable businesses should be well-aware of their risk.
When you are looking for a business to invest in, you need to do some research. Do not be easily swayed by tall claims. Do not just take the word of the business representative or by looking at their website. Educate yourself about scams and how they affect the economy.
The more information you have about your potential investments, the better decision you will make. It is often better to invest in a legitimate business that has a good fraud history and is trusted by the public. You may not like to hear this, but your safety as well as the safety of your family come first.
If you have decided to invest in a small business, you have taken on a significant amount of risk. Make sure you are well-educated about the industry and the scams that affect it. The more you know, the more confident you will be when making decisions about your own finances. This is especially important when you have put so much money at stake. Educate yourself and you will be better equipped to avoid scams.