Dreaming about making extra cash with an online business or by trading cryptocurrency? Are you ready to ditch the 9 to 5 life to be your own boss? You might see business opportunities and training programs marketed to (supposedly) help make that happen. But big promises of big money are one sign that you’ve run into a scam.
Take DK Automation, LLC., for example. According to a complaint by the FTC, the company and its creators, Kevin David Hulse and David Arnett, promised huge returns to trick people into buying business opportunities and training programs. The claim? They could teach you how to build, open, and run massively profitable stores on Amazon. But, says the FTC, those claims were deceptive or flat-out false. Most people who bought DK Automation’s programs never earned, and even lost money.
DK Automation also offered investment “training” that promised to show people how to secure cryptocurrency riches. For fees of $20,000-$85,000, the company offered a trading bot to invest in crypto and (supposedly) make lots of money. But the FTC says that this claim also turned out to be a bust.
If you’re looking for a business opportunity or training in investments or business development:
- Do your research. Search online for information about the company with words like “scam” and “complaint.”
- Steer clear of companies that use high-pressure sales tactics. It’s a red flag if someone says you must act immediately or discourages you from taking time to do some research.
- Question claims about future riches. Promises that you’ll beat the stock market, make over-the-top-profits, be able to quit your job, and live a life of luxury are strong indications of a scam.
- Don’t trust anyone who says you can quickly and easily make money in the cryptocurrency markets. Only scammers will guarantee profits or big returns. And all investments come with risks.
Spot a business opportunity, training, or investment scam? Tell the FTC at ReportFraud.ftc.gov.
The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
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If you take most any company or organization and put the word scam in front of it, that is all you get- complaints from people that could not make it! Many people fail because they don't put the work into the opportunity. They fail for lack of initiative and since most people never take responsibility for what they do, it must be someone else's fault!! I'm not saying there are no "scams" out there, but when googling you get what you search for and it is not always true or correct. Be careful what and how you ask for information.
Wish you could recommend legitimate sites.
Hello ftc.gov administrator, Your posts are always well-received by the community.
Just because a business opportunity is oniline doesn't mean it's a scam.
First, a scam website will have a po box address whereas a legitimate business opportunity website will have an actual street address for its corporate headquarter and manufacturing facility.
Secondly, a scam website will tell you that you will make lots of money overnight whereas a legitimate business will tell you it will take time and work and furthermore, they offer free training and support.
Thirdly. in a scam commissions are based on how many people you recruit and if there is a product it is usually of cheap quality. In a legitimate business opportunity you are paid commissions on the high quality products you sell.
And lastly in a scam there is high pressure to start and they are usually fly by night . In a legit business the opportunity will be there when you are ready.
To the ftc.gov admin, Your posts are always well-delivered and engaging.