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Beware of this online jobs scam

There are many scammers online. Try searching for work from home jobs and you'll probably come across hundreds of them. This online jobs scam has been particularly ruthless. Here is how it works, so you know what to watch out for...

The scam may be described in different ways or run by different people, but the principles are the same.

  1. The scheme starts with one person at the top of a pyramid. They recruit someone to buy a product, such as an e-Book, or invest a certain amount of money, say £100.
  2. The person who buys the book or pays the sign up fee is then required to recruit a certain amount of other people - usually ten. Each of these ten people buys a copy of the e-Book or invests £100. This money goes to the recruiter. So from an initial investment of £100, or the purchase of one e-Book, the recruiter now has £1,000 or the profits from ten e-Books. One tenth of this profit will be passed back to the person who recruited them originally.
  3. Each of these ten recruits now finds an additional ten people, resulting in 100 members. Again, they pay to the recruiter, who passes ten per cent of profits back up the chain.
  4. It is impossible for such a scheme to sustain itself, and 90% of people who get involved lose their money.

This is the infamous pyramid scheme, and nowadays there are many such schemes masquerading as work from home jobs. These can range from envelope stuffing to affiliate marketing - be cautious of any job that requires you to pay an upfront fee or recruit more members.

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