Data entry scams come in many forms, but all want your money
Trying to tell data entry scams from legit data entry jobs takes careful research and common sense. Common sense tells you that low-skill jobs never pay high wages. And legit data entry salaries
typically pay very little. It follows, then, that data entry
jobs promising big money are scams. Careful research will help
you locate legitimate work-at-home opportunities.
Do Your Research
For starters, you should do an internet search to see where the firm
is located, a description of what they do, how many people they employ,
when they were founded, and so on. If you don't find anything online,
that's a clear signal they are not legit. If your web research turns up
some information that looks sketchy, check out the company via the
Securities and Exchange Commission (SEC) and Better Business Bureau
(BBB) websites. If you can't find them on the SEC or BBB site, you're
better off walking away.
Red Flags That Jobs Are Scams
Fraudulent data entry schemes are no different from other typical
work-at-home scams such as pyramid schemes, bogus classes, fake
certifications, or payment for resources available for free elsewhere.
If a work-at-home data entry job asks you to pay an administrative fee
or asks you to lay out money in order to receive the information you
need to get started, be cautious—data entry jobs should not require you
to make any kind of initial outlay.
Scams will often ask for a small fee upfront to "show you are serious." These are all telltale signs of a work-at-home scam.
What Data Entry Scams May Look Like
One of the negatives about the internet is that you don't always know
who's behind the computer. While new scams are created every day, some
of the more popular ones look like the following:
Affiliate marketing. Sometimes data entry scams are
really affiliate marketing business opportunities. Often these are
labeled "nontraditional data entry." And while affiliate marketing is a
legit home business, what makes these scams are the misleading
advertising and promises of big earnings. Affiliate marketing is not a
quick and easy way to make money. First, you have to build a website,
then you have to drive traffic and generate sales. No one can sell you a
legit turnkey operation to do this.
Along these same lines are work-at-home opportunities that require
you to post ads to online forums. These opportunities may very well be
pyramid schemes because they only pay for recruitment of more people who
will post more ads.
Classes, business kits, training, certification, etc.
Often the nontraditional data entry (or affiliate marketing)
"opportunities" are only tutorials about affiliate marketing, which may
or may not be helpful. Other data entry scams may sell classes,
training, or certification that promises to help you get a job. You
might also run into a situation where the company says the training is
required in order to work for them. While some specialized data entry
jobs, like medical or legal transcription or medical coding, do require special training, most do not.
Investigate carefully any training or certification before making any kind of commitment.
Transcription jobs. Transcription is one form of data entry. Data entry scams dressed up to look like transcription jobs
will often require paid training or a fee in order to get a list of
employers. They could also require tests or demand administrative fees.
One scam is to require applicants to take a test, which is not uncommon
for legit data entry jobs,, but everyone or nearly everyone fails.
Medical coding and transcription. Data entry scams
that tout medical coding jobs often require that you pay for bogus
certification or training. These will also sometimes offer turnkey
business opportunities. If the jobs are positioned this way, they
definitely are not legit. Instead, find out about legitimate medical transcription jobs for a number of reputable medical transcription businesses.
Process rebates scam. The pitch in these
work-at-home scams is that you make money just by filling out online
forms—everything you need is provided. This is your classic
bait-and-switch scam because, in reality, you have to send $150 to $200
(or more in some cases) for a program that lets you process rebates at
home. At best, what you receive is information that is available for
free elsewhere. At worst, you are hooked into a work-at-home scam in
which you use your money to process rebates and then you're never
reimbursed.
Ways to Protect Yourself
You can take several steps to make sure you don't fork over money to a
scammer, and ensure that you get paid from a legitimate digital boss.
- Insist on a binding contract of employment that clearly states your hours, pay, and benefits (if any). Don't start work until both you and the employer have signed the contract. You may also want to have an employment lawyer look over your contract.
- Don't hand over any of your personal information (especially your Social Security and checking account numbers) until you know who you're dealing with. Scammers out there can easily steal your identity, and some scammers are in the business of selling your stats to hackers who are expert at identity theft.
- Don't ever trust Yelp reviews or testimonials on a company's website. It's best to ask for references and contact those people directly. Just be sure the references are on the up-and-up, and not somebody's cousin, by asking them detailed questions. If possible, speak to the person on the phone—if you do it via email, you could be corresponding with a Russian teenager who has computer access.
- Even if the company seems legit, it pays to visit the BBB website because they list known business schemes under their "Scams" banner. Also, unless you recognize the name of the business, avoid any company operating outside of the U.S. If they are a scam operation, you won't have a legal leg to stand on.