FTC Cracks Down on Scams

July 3, 2009
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The FTC has begun a crackdown on scammers targeting the unemployed. They are after offers promising a job in exchange for money, get-rich-quick schemes, phony government offers, fake debt reduction firms and unauthorized credit card charges.

Operation Shortchange

The FTC calls its endeavor “Operation Shortchange”. While the efforts are focused on the unemployed, it also benefits online workers trying to make a living while working from home. Many stay at home mothers have fallen for such schemes in desperate attempts to find a way to earn money at home so they can be with their children.

Watch this video to see how one scammer bilked so many people that he landed in jail. He talks about the means he used to dupe unsuspecting people. You will never spend time looking at offers supposedly endorsed by Oprah again!

Here are some examples of the scams being prosecuted by the FTC:

John Beck/Mentoring of America.

This firm made $300 Million by selling get rich quick Internet programs for $39.95. They then contacted buyers and sold their coaching services for thousands. Buyers were then unknowingly charged maintenance fees of $39.95 per month and received overwhelming sales calls, despite requests to stop.

Wagner Ramos Borges, “Job Safety USA,”

This guy went after maintenance workers, offering a bogus certification number for $98. He duped them by making them think this certification number was supposed to get the buyers jobs.

Google Money Tree

This company tricked consumers into giving away financial information, claiming to be affiliated with Google. They advertised a low-cost get-rich-quick kit but then did not tell consumers the kit would also cost $72.21 a month.

Penbrook Productions, Michael Allen Brooks

This work at home scam charged $197 to provide a “certified” rebate processor designation. They claimed workers could earn up to $225 per hour. After the purchase, consumers found they did not receive information for becoming rebate processors, but a plan for affiliate marketing. Promises of ‘Money Or It’s Free,’ were not kept.

All this should serve to remind us that there is no way to “Get Rich Quick”. Earning money online requires hard work, dedication and persistence. No plan or scheme will give you an easy way to make money online.

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