How to Run a Scam Check

In today's internet age, there seem to be amazing ways to earn money online, save money by purchasing online, and grab opportunities instantaneously. There's a million ways to succeed, and seemingly a billion ways to fail. Identity-theft and fraud are a major problem, this article is intended to provide you a few tools to make sure that you are dealing with a legitimate company.

I worked for a business-to-business financial services company for many years and I learned a few tricks of the trade when dealing with companies.

Do you want to check out a company, but you're worried about its legitimacy? A few warning signs that a company is a scam:

1. Money up-front / Information up-front

If the company intends to hire you in some capacity, the business should be paying you, not the other way around. Any time you have to pay up front, take caution.

Secondly, there are MANY legitimate companies that require personal information. Some legitimate websites that offer money-making opportunities will require you to submit your phone number or your address. It is up to you to decide if you want to trade that information for value.

Here's a hot tip: if a mortgage asks you to provide your social security number for a refinance-estimate, you can decline and instead send them a copy of your credit report - as long as it is recent.

2. The business does not have a listing with your Secretary of State.

Any reputable business must register with the Secretary of State as a corporation, typically called a "Limited Liability Corporation" (LLC) or partnership. If the business does not have a listing, ask that company to see its listing.

3. The business does not have a F.E.I.N. number.

An F.E.I.N. number is a public record of a business. It's like a business's social security number; it's unique and tied to the owners of that business. Keep in mind that businesses do not typically disclose their F.E.I.N. numbers, but they are a way to prove if a company is real.

4. The business is not a member of the Better Business Bureau