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
- Be suspicious of schemes that offer large amount
of money. Fraudsters have successfully used greed
for centuries to cheat people.
- 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.
- Real Work-At-Home Schemes seldom send unsolicited
e-mails. Be suspicious of extremely attractive offers
from unknown persons (unsolicited or spam e-mail).
- Most fraudulent schemes have elements of secrecy,
urgency and promise of easy money. Be wary of any
scheme that has these elements.
- Carefully evaluate offers that require no skill
or experience and require very little time.
- Do not pay upfront unless you have thoroughly
investigated the offer
- Ask for references
- Talk to people who have participated or are presently
working in the scheme
- 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).
- 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
