Office of the Attorney General
Attorney General Stumbo Warns Consumers About Get-Rich-Quick Scams
Attorney General Greg Stumbo today warned consumers to be cautious in purchasing business opportunities and training for money-making opportunities.
“I am committed to protecting the public from the operators of get-rich-quick scams,” said Attorney General Greg Stumbo. “Legitimate business opportunities requiring an investment over $500 are required to register with my office, provide a bond and disclosure documents. People need to remember that if it sounds too good to be true, it probably is.”
In particular, the Attorney General’s office has noticed an increase in attempts to lure consumers into purchasing training and software for internet-based business and marketing. Consumers should exercise caution and review the tips below prior to purchasing such training or business opportunities.
The Kentucky Office of the Attorney General and the Federal Trade Commission suggest consumers follow these tips before investing in any business venture or work-at-home opportunity:
- Does the ad promise big money for little effort? Fraudulent ads use similar bait: Fast cash. Minimal work. No risk. And the advantage of being your own boss or working from home.
- Before promoters can accept money from potential investors, the law requires that they give investors important disclosure documents. If the promoter does not make the document readily available, interested consumers should find another opportunity.
- Talk to current investors, but beware of paid “shills,” who work for the company. Visit other business sites in person. And get professional advice if you need it. Do not lose your life savings just because you did not spend a few hundred dollars to talk to a lawyer, an accountant, or another expert.
Consumers should visit the FTC’s Web site at www.ftc.gov/bcp/conline/pubs/online/netbizop.shtm for more information on evaluating internet based business opportunities, and www.ftc.gov/bizopps for information in both English and Spanish to help identify and avoid business opportunity scams.
Anyone who has questions about purchasing an internet or other business opportunity should contact the Attorney General’s Office of Consumer Protection at 1-888-432-9257 and their local Better Business Bureau office.