How To Spot Fraudulent Business Opportunities And Money Making Schemes?
Serge Dandelin writes about fraud and due diligence:
"Fraud. You find it everywhere. There is so much of it in today's world that you would think this is the rule and not the exception.The fact is that many people find it easier to make money by cheating others than working hard. Sad but true.
Where does that leave you?
You need to be very circumspect when you buy something on the Net so you could spot the signs that point to fraud and protect yourself."
Mr. Dandelin, who is apparently a "Search Engine Optimization specialist and consultant" who has written over 300 articles in print and 5 published ebooks, proceeds to demonstrate that he knows very little about business opportunity laws.
Don't follow his advice.
At present, there is only one sure fire way to avoid a business opportunity fraud.
First, locate the regulator responsible for overseeing the sale of business opportunities in your state.
There are 26 such regulators.
Second, phone them up, or email them and ask if the seller is registered in your state.
Third, if they are not registered- pass on the opportunity. If they are registered, get a copy of their registration and start your due diligence - preferably by finding other people interested in the opportunity.
Here is an example, from the State of Washington. Coastal Vacations is a fraudulent business opportunity seller of work at home scams. In 2001, the State of Washington cracked down on them, and again in 2007.
But if you don't know where to look, then all the regulator's hard work goes out the window.
So why did Serge write up his silly article on fraud - when he had nothing of value to add?
Because he wants you to think that he is a trusted authority, which will make it easier for him to sell you some scammy SEO services.
Read More From BizOp News
February 22, 2008
Why BBB Promotes Fraud
The BBB innocently enables fraud by allowing this sort of nonsense to be part of the "received wisdom" Troy Franklin's Business Blog: <b>Choosing An MLM Business Opportunity Wisely</b>
Troy Franklin writes: "Check with the Better Business Bureau since they know if a company is legitimate or not.If the company is legitimate, check the site.
Make sure that BBB symbols or other protection symbols appear on the site. Look for money-back guarantees or trial period offers.
Companies who are true have no concerns about posting this information.
Fraud sites could care less to take the time to include this feature.
Once you feel safe that the company and site are valid, you want to read over the full details of the MLM business."
There is no polite way to say this: Mr. Franklin is an idiot at best, and a BBB shill at worst.
The BBB is a franchised business designed to mediate consumer disputes.
It does not investigate fraud, its symbol is not meant to be a representation that a company is legitimate.
Any company can pay to become a BBB member.
Any fraud will be in business for less than a year, so it makes sense for them to acquire the reputation conferred upon them by being a BBB member.
Many frauds have been innocently endorsed by the BBB- you cannot blame the BBB, it is not their job to identify frauds.
Do not believe that there is some agency out their that will tell you for free that a company is a fraud.
