Here are few tips on how to detect fraudulent schemes and protect oneself and a real life story of fraud work-at-home scheme that happened in Bangalore.

Tips on How to Detect Fraud Work-At-Home Scheme

1. Be suspicious of schemes that offer large amount of money. Fraudsters have successfully used greed for centuries to cheat people.





2. Be particularly wary of jobs that require low or no skill like envelope stuffing schemes. Low-cost, modern mailing technology has virtually eliminated the need for workers to perform bulk envelope stuffing, addressing, and mailing services from home.





3. Real Work-At-Home Schemes seldom send unsolicited e-mails. Be suspicious of extremely attractive offers from unknown persons (unsolicited or spam e-mail).





4. Most fraudulent schemes have elements of secrecy, urgency and promise of easy money. Be wary of any scheme that has these elements.





5. Carefully evaluate offers that require no skill or experience and require very little time.





6. Do not pay upfront unless you have thoroughly investigated the offer





7. Ask for references





8. Talk to people who have participated or are presently working in the scheme





9. Surf various Internet fora, ask questions, search for references in Usenet discussions. You may find useful accounts from past victims. (please see back issues of FAIDA for information on Usenet. The link to back issues of FAIDA is given at the end of this e-zine).





10. Check various anti-fraud sites. vanik.com has a section on scam watch and links to useful sites.

Real Life Story

Dx-Logix (name changed), 'the complete IT enabled services lab', as they call themselves, is a company that has duped over 400 people in Bangalore and fleeced crores of rupees.

Dx-Logix claims it is a direct agency of a US based company and associate of another Singapore based company. Shankar (name changed) made a one time non-refundable investment of Rs 50,000 to obtain a 12 month data conversion franchise from Dx-Logix. He was given bulk data for conversion, which he did and was paid for.

But, when paytime for his second and third assignments came by, the company said the payment had not come from the partner company and they would pay later. "But the money never did come through." This is the story of 400 other people who worked for Dx-Logix. Says Sujatha, "I lost more than Rs 2-3 lakh,"

When the franchisees went to the Dx-Logix office, they were given cheques which later bounced. The company issued cheques dated May 20 to be drawn on Karnataka Bank, Mahalakshmi Layout branch, to all the 400 people. On May 19, the company withdrew Rs 10 lakh from the account, leaving it almost empty.

Sources in the bank said that Dx-Logix had issued many stop payments and cheques it had issued had bounced.

Later, Dx-Logix sent out letters asking them to re-present the cheques on June 5 and again on June 17, When Time News Network tried to contact Dx-Logix CEO on the telephone, it found the office telephone lines disconnected. He couldn't be contacted on his mobile either.

As the cheques started bouncing, franchisees sent Dx-Logix CEO a legal notice at his Kumara Park West office. It returned with a 'door locked' stamp.

Source: For full story with real names, please see The Times of India , Nov 23' 2002

Related Links:

• Internet Frauds and Scams - Part II : Work at Home Schemes


• Internet Frauds and Scams - Part I : Understanding the Fraudsters and their work


• Internet Traps - Watch out !- You may be the next victim


• Traps in Internet: Nigerian Scam - Be careful of deadly snakes flourishing in cyberspace

Source: FAIDA - Newsletter on Business Opportunties from India and Abroad Vol: 3, Issue 40 January 30' 2003