Five quick-cash opportunities you should avoid

What’s a get-rich-quick scam?

Get-rich-quick scams, also known as get-rich-quick schemes, are ploys that promise people large sums of money once they make a small investment or pay a fee. Those who participate in get-rich-quick opportunities never receive the money that they’re promised. Scammers make money off of these quick-cash opportunities by taking people’s hard-earned money.

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Here are some common quick-cash opportunities you should steer clear of.

1. Multi-level marketing schemes

Multi-level marketing schemes, also known as MLMs, network marketing schemes, or direct marketing schemes, are businesses that entice people to join the company by promising them commission for selling the company’s products. MLMs often sell makeup, dietary supplements, and skincare. Typically, you have to buy the company’s products to start selling them. These companies are appealing to victims because they allow you to work from home. Those who join the company are on their own when it comes to convincing their family, friends, and strangers to buy their products. When you join an MLM, you’re also promised more money by recruiting other people to join the company and sell products. According to the FTC, most people who join MLMs make little money, no money, or even lose money.¹ Multi-level marketing schemes are a get-rich-quick scam that can quickly leave you in debt.

2. Advance fee scams

Advance fee scams are when investors are promised money, stock, proceeds, or warrants by paying an up-front fee. Scammers may refer to this fee as a membership fee, participation fee, administrative fee, or handling fee. Victims are promised their up-front fee will be paid back later. Those who are looking for quick cash may find this an appealing opportunity. Unfortunately, those who send money never get it back. If someone ever asks you for money in order to get more money, walk away immediately.

3. The lottery

While the lottery isn’t necessarily a scam, your chances of actually winning are extremely thin. People buy dozens of tickets to increase their chances of winning. Even though lottery tickets are inexpensive, buying multiple tickets adds up, and there are better ways you can spend and invest your money.

4. Payday loans

Payday loans are short-term loans that typically provide $500 or less. These loans are usually due on your next payday. To pay back the loan, the borrower must write a post-dated check with the full balance,or give the lender authorization to remove the funds from your bank account. Most payday loans require you to pay $10 to $30 for every $100 borrowed.² While payday loans may seem like an easy way to get quick cash, they can easily put borrowers in debt.

5. Too-good-to-be-true job listings

Anyone can post a job online. Scammers use this as an advantage and prey on those who are looking to make quick cash and get rich. Scammers will post fraudulent job listings or reach out to victims by pretending to be a recruiter for a legitimate company. The scammers will offer a work-from-home role with a high salary to entice people to apply. Scammers will either steal your identity or steal your money by asking you to purchase equipment or pay money upfront.

How to spot get-rich-quick scams

There are always new get-rich-quick scams being created. Here’s how you can spot get-rich-quick scams:

• Look out for the language used. Most get-rich scams use grandiose phrases like “Be your own boss!” or “Make money in your sleep!” Get-rich-quick scammers also use messaging that has a sense of urgency, like “Apply before it’s too late!”
• Do your research. Do a quick online search to see if the company offering you money is legitimate.
• Look out for upfront cash. Being asked to pay upfront to make even more money is a huge indication you’re entering a get-rich-quick scam.
• Think logically. If it’s too good to be true, then it probably is. For example, if you’re offered a $500,000 salary in a role that you have zero experience in, there’s a high chance it’s a scam.
• Avoid recruitment plans. If you have to recruit more people to an organization to earn cash, you’re being scammed.

Quick-cash opportunities may seem appealing, but they’re not worth your time. Explore more budgeting tips from Microsoft 365.

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