The Arizona Attorney General's Office saw a nearly fourfold increase in complaints involving potential work-at-home scams during the first months of 2009 compared with last year.
The increase is likely due to people's financial woes during tough economic times.
The schemes usually offer consumers an at-home job or business startup plan, promising large profits in exchange for a significant upfront payment, the office warned in a news release Tuesday.
During the first quarter of 2009, the Attorney General's Office received 848 complaints from people who think they were scammed this way, compared with 226 complaints in the same time period the previous year.
The Better Business Bureau of Southern Arizona has witnessed the same trend, said President and CEO Kim States.
"People who wouldn't have given these scams a second thought a year ago are finding them a little more enticing this time around," States said.
Most complaints coming into the attorney general involve Internet-based companies. Victims told the office they got involved with the company to supplement income after a job layoff, losing money in the stock market or a resetting mortgage payment.
The "opportunity" requires consumers to pay an initial price or fee — often $500 to $1,000 — with the assurance they will quickly earn hefty profits. According to the attorney general, when the venture produces little revenue, the promoter pressures the individual to buy expensive advertising or marketing tools to make business more effective.
Once the promoter has the money, the consumer realizes the business venture is unsuccessful or produces a return much smaller than the startup costs
The increase is likely due to people's financial woes during tough economic times.
The schemes usually offer consumers an at-home job or business startup plan, promising large profits in exchange for a significant upfront payment, the office warned in a news release Tuesday.
During the first quarter of 2009, the Attorney General's Office received 848 complaints from people who think they were scammed this way, compared with 226 complaints in the same time period the previous year.
The Better Business Bureau of Southern Arizona has witnessed the same trend, said President and CEO Kim States.
"People who wouldn't have given these scams a second thought a year ago are finding them a little more enticing this time around," States said.
Most complaints coming into the attorney general involve Internet-based companies. Victims told the office they got involved with the company to supplement income after a job layoff, losing money in the stock market or a resetting mortgage payment.
The "opportunity" requires consumers to pay an initial price or fee — often $500 to $1,000 — with the assurance they will quickly earn hefty profits. According to the attorney general, when the venture produces little revenue, the promoter pressures the individual to buy expensive advertising or marketing tools to make business more effective.
Once the promoter has the money, the consumer realizes the business venture is unsuccessful or produces a return much smaller than the startup costs
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