Find Out If a Company Is a Scam
Scams commonly come in the form of "get rich quick" schemes and products that claim to work miracles. The old adage "if it sounds too good to be true, it probably is" tends to ring true. Initially, you may find it difficult to distinguish an established, trustworthy business from one of these scams, so you may have to do a bit of digging. There are a number of actions you can take to discover if a company is a legitimate business.
Instructions
1. Perform an Internet search on a major search engine (like Google, Yahoo!, or MSN) to determine if a company is a scam. Type in the company's full name then the word "Scam" into the search engine box. This will bring up any information from former customers or websites warning potential customers of the service.
2. Check the company out on a complaint website (see "Resources" for an example). These websites allow customers to submit complaints about a company, then allow the business to reply to the complaint. If a company has a series of similar complaints suggesting that it may be a scam with no replies from the business, consider that a red flag.
3. Do a search on the Better Business Bureau's (BBB) website. If the company has a rating of D or F, with little or no replies from the business to the BBB regarding complaints, it could be a scam.
4. Call your state's attorney general office to ask if anyone has filed a complaint against the company. Inquire about the nature of the complaint--try to find out if it was resolved satisfactorily or if there is legal action pending.
5. Call the chamber of commerce in the business's locality to assure that it's a registered, valid business. If a door-to-door salesman visits your home, contact your local police department or town administration office to assure that he has proper permits to sell services and products in this manner.
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