Job scam costs man $47,000

Working from home is appealing, but it's important to realize that for every one legitimate remote job there are 70 scams.

A Cleveland man just lost $47,000 over one of those scams.

According to WEWS, Larry Davis was offered a job that allowed him to work from home to earn money.

The job entailed Davis purchasing a variety of goods and shipping them to Europe, Russia, and Asia. Davis would use his credit card to make the purchases, and the company was supposed to reimburse him. That never happened, and Davis racked up $47,000 worth of credit card charges before realizing it was a scam.

This is just one example of the several work-from-home scams I've highlighted over the years.

Before accepting any job, the key is to research the company that is offering you the job.

If they want you to pay any money up front, that's a big red flag. If they ask you to cash checks, and then wire money to someone else, that's also a big red flag.

Right now, jobs claiming to involve reshipping work are the ones to watch out for.

This is where you are sent products like iPhones, computers, and other electronics to open up, and then reship to someone else. In reality, you could be part of illegal activity.

Flexjobs broke down the most common work-from-home job scams. If you're offered these jobs, don't say yes right away. Do your homework to make sure it's legit!

1) Data entry scams

Jobs that don't involve much skill but promise a high payoff. They often require an upfront payment for training or processing.

2) Pyramid marketing

This type of marketing is illegal, usually not involving an actual product but just monetary exchange.

3) Stuffing envelops

This claims you can get paid to stuff envelopes from home after you sign up and pay a registration fee.

4) Wire transfers

While offering work opportunities, some sites may ask you to wire money to support them. It is especially difficult in these cases to recover lost funds because once you wire money, it can be transferred to other accounts very quickly.

5) Unsolicited job offer

Usually, this comes as an email offering a job or an interview opportunity. They usually come off as unprofessional even if claiming to be a large, well-known company.

6) Online reshipping

Lookout for this one. Reshipping goods that could be stolen is a criminal act.

7) Rebate processor

The promise of a high income just by filling out online forms and creating web ads. This does not always pay off.

8) Assembling craft/product

Companies claim you can make money by assembling products at home and sending them to manufactures.

9) Career advancement grants

These grants appear to government grants which can be directly deposited into your account and something you don't have to pay back.

Flexjobs suggests asking yourself a few questions such as "do I have to pay in order to be hired" or "is this offer too good to be true."

You should also be able to locate the hiring company through the website. Be sure to research them to see if they are hiring or verified by other organizations.