- Category: Widget
- Published: Friday, 27 June 2014 12:43
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Watch Out For Fake Business Opportunities, Warns Staten Island’s Only Community-Based Bank
STATEN ISLAND, N.Y. – Victory State Bank is urging Staten Islanders to be on the lookout for phony business-opportunity scams.
According to the Federal Trade Commission (FTC), one clue to spotting a fraudulent business opportunity may be the type of opportunity being advertised.
Fraud has most often been associated with promotions for vending machine, display rack, pay phone, medical billing, and some Internet-related businesses, explains the FTC.
The federal agency lists several other claims that have made it into the pages of legitimate papers, magazines and Websites recently:
‘Work Part-Time from Home’
Most scammers promise an ideal work situation — the ability to set your own hours, be your own boss, or work from home. In fact, this rosy scenario is far from reality for most small business owners. “Be Your Own Boss” “Own a Dealership Today”
‘Earn $2,000 a month’
If an ad claims buyers can make a certain amount of money, the law says the promoter must give the number and percentage of previous purchasers who earned the income. If an earnings claim is there, but the additional information isn’t, ask for more information: the business opportunity seller may be violating the law. “$50K/yr” “Vending route nets $1,700/wk”
‘No risk! Guaranteed!’
Ads that promise a big payout with little or no risk are usually a telltale sign of a fraud. Legitimate business ventures involve risks — usually in proportion to the promised return. “Huge Income” “100% return on your investment!”
‘Quick and Easy!’
Successful start-up businesses, including franchises, require a lot of work to get off the ground, let alone manage. Only a few are profitable from the start. If ads promise vending locations, they may not be current or high-traffic; the merchandise also may be out-of-date or of poor quality. “Start Earning Today” “Prime locations available now”
These are examples of possibly deceptive claims. If you see them, highlight them for the appropriate person in your company. At the same time, know that many fraudulent business-opportunity promoters use more subtle language when making promises, guarantees, and claims that they can’t possibly keep.
By taking a few moments to review the claims made in business opportunity ads, you can protect the reputation of your company — and the consumers in your community.
About Victory State Bank
VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited onlinehttp://www.victorystatebank.com.