Business Promotion and Coaching Scams
What are they ? Business promotion and coaching scams claim to offer you ways to make cash fast and grow your business but fail to deliver after you have paid .
How common are they ? Business coaching schemes commonly target business owners and people working from home . In 2019 , the FTC returned over $ 2 million dollars to consumers who were the victims of a single business coaching scam alone .* Expect to see them more during times of economic hardship when businesses are more vulnerable .
What do you do if you have been a victim of a business promotion or coaching scam ? If you have been a victim of a business promotion or coaching scam , unfortunately , getting your money returned to you is unlikely . It is still worth your time to contact your bank and see if it ’ s willing to flag the transaction as fraudulent . Otherwise , you are likely going to have to cut your losses . Paying by credit card does provide additional protections against fraud , so consider using a credit card for business expenses .
Where should you report it ? If you come across this scam , you can report it to the Federal Trade commission at ftccomplaintassistant . gov .
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How do you recognize them ? You have probably seen this scam before , either as an internet ad , email or phone call . No matter how they contact you , the pitch is the same : Someone claims they can help you double the size of your business or become more profitable in a matter of weeks . As tempting as this may seem , be skeptical about any “ quick and easy ” offer . As a business owner , you understand that running a business is far from easy and true success often takes time . If it sounds too good to be true , it probably is .
These are just a few examples of scams you may come across as a business owner . Remember , these schemes become more sophisticated from year to year , so it is important to stay vigilant and do your research . And don ’ t forget , on top of reporting the scam to the appropriate agencies , post your interaction to BBB Scam Tracker at BBB . org / scamtracker . To learn the about the latest scams in your area , follow us on Facebook , Twitter and Instagram . Just search “ centraltexasbbb .”
Do your research . Testimonials and reviews of the service provided as evidence by the company are notoriously fake , so try to get your information about the business from BBB . org . If you can ’ t find a business profile , don ’ t be afraid to type in the company name with the phrases “ scam ” or “ complaint ” in your search engine . If their business is as great as they say , you should have no problem finding positive reviews on their company in places besides their own website .
Also , pay attention to the services offered . If they are asking you to pay for information that you can find on your own for free — such as through the Small Business Administration , Small Business Associations and local community colleges with small business centers — beware . Once they have told you what information they can give you , they ’ ll aggressively ask for money up front before you ’ ve received anything from them . This is a red flag . Never give your money to a company that is pressuring you to send money for a product or service that hasn ’ t yet been provided .
Source : https :// www . ftc . gov / news-events / press-releases / 2019 / 10 / ftc-returns-more-2-million-victims-business -coaching-scheme
https :// www . consumer . ftc . gov / blog / 2013 / 01 / beware-business -coaching-scams
https :// www . consumer . ftc . gov / blog / 2018 / 05 / work-home -scams-lead-business-coaching-schemes
BBB TRUST TALK 29