Beware of bogus schemes. Our expert gives you the facts to help you stay scam-free

Here's the scenario: you want a job, but don't have the qualifications or experience to get something that pays enough to cover childcare and all the other costs of going out to work. Suddenly, the promise of an income for work you can do from home and fit around other commitments sounds very appealing.

Here's the trap: you'll see adverts for various home working schemes in newspapers, magazines, shop windows, on lamp posts or even get them in your email. Although some are legitimate, a whole lot will take money from you, without any intention of providing an income in return.

How to recognise a scam
A real giveaway for bogus schemes is that, they ask for money up front. You should never part with money in advance. Genuine schemes will not ask for it. One of the most common scams that appears again and again is the envelope addressing and filling scheme. Thousands have paid a registration fee to join and ended up with nothing. At best, they get you to place adverts like the ones you answered and recruit other people into the scheme. You are promised a commission on new registration fees, so if you do earn anything it will be from conning others. Other envelope schemes take your money and give nothing in return, or refuse to pay, because they say your work is unsatisfactory.

Adverts for people to assemble craft kits at home are equally dodgy. They sell you the kits and promise money in return for making up the goods, but they have no intention of paying. Send the stuff back to them, and they say it is sub-standard so you've wasted both time and money.

Where's the protection?
It was repeatedly hearing stories such as these that prompted Labour MP for Birmingham Northfield, Richard Burden, to introduce a Private Members Bill to make such practices a criminal offence. He believes there are around 300 such scams operating in the UK at any one time.

Next page: what happened to the bill

Burden points out that, such schemes target the most vulnerable in society by 'appearing to promise everything they need; good pay, instant job opportunities and the ability to work from home at hours that suit them. In reality they're just a way of obtaining money on false promises, and they undermine those operating legal and decent home working schemes. It was remarkable how many women, often lone parents, contacted me to protest against these unscrupulous schemes.' He's also concerned about the effect it has on their self-confidence, which is often quite low to start with.

Sadly, the Bill failed to get beyond a second reading. Many labour MPs were in their constituencies that day, and with abstentions from some Conservatives, the bill failed to progress. However, Burden is determined to continue campaigning;'The more people who raise the matter the better. I cannot stress too strongly how important it is that this issue remains in the public eye. Anyone concerned should write to their MP, demanding to see legislation on the matter.'Here's how to get started.

What you can do to protect yourself
In the meantime, if you take a few common sense precautions, you can go a long way towards making sure any work done at home leaves you, rather than the con men, better off.

• Don't part with money upfront. Requests for registration fees, administration fees, and costs to cover materials are a good indication of a bogus scheme.
  
  
• Don't pay for a directory of home working opportunities. These are worthless lists of companies that often request a registration fee, usually for work that ends up paying nothing.
  
  
• Don't be taken in by offers of money back. The conditions that apply make it impossible.
  
  
• Don't be taken in by the fact that the advert appears in a reputable magazine or newspaper, that’s no guarantee of anything.
  
  
• Don't call premium rate phone and fax numbers to find out more. Schemes using these are making money from you contacting them and probably offer nothing.

Next page: more tips

• If something sounds too good to be true, it probably is.
  
  
• Do check with your local Trading Standards Office or telephone the National Group on Home working before becoming involved in any scheme. Their free helpline 0800 174095 is open 10-12:30 and 1-3:30, Monday to Friday. They can give you information on specific companies and on home working, generally.
  
  
• Do find out more about any company you decide to work for. If they're legitimate, they'll be happy to provide all the details you need for free. If possible visit their premises.
  
  
• Do try to talk to other home workers, who are or have been involved with any schemes.

Useful sites
Information from the DTi
Internet homeworking directory
Smarterwork.com
Contact your MP. Use this site to make your views known and to persuade your MP to support anti home working scam legislation.