Author: Christy Bieber

When Tony Brown got a call in late November from someone named "Emily" who said they worked for a company called Moneypark Finance, he thought his prayers had been answered. According to News 5 Cleveland, Tony and his wife, Christina, had been seeking a personal loan to furnish their new home and buy Christmas gifts for their kids. Emily just happened to offer them the chance to borrow $8,000.

But the Elyria, Ohio, couple ended up walking straight into a nightmare that continues to haunt them. An investigation by the local broadcaster found no evidence that Moneypark Finance existed, and the couple had been swindled for thousands of dollars in a check scam.

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"It’s depressing because we really haven’t been able to get caught back up on everything," Christina told News 5 in a story published April 17.

Now, the couple wants to warn others. Here’s how the scam worked, along with some tips on how to avoid a similar situation.

How a scam cost the Browns thousands

The Browns say Emily told them they could borrow funds, but there was a catch. Because the couple had poor credit, she said they’d have to print the loan checks themselves, which were sent by email. The couple was instructed to buy blank check paper and print them out.

Next, the Browns say they were told to deposit the checks into their account at different Fifth Third Bank locations. Afterward, they were to buy gift cards and forward the codes on those card. The instructions left them scrambling.

"I’m getting off work and I’m running around Lorain County trying to get these checks done and deposited, and then have to turn right back around and go buy gift cards,” Christina explained.

She began to get upset, and Tony acknowledged the situation was a little odd

"When the bank accepted my first one, I was like this might be cool," he said. "I didn’t know she was going to make me do it again and again."

The couple got fed up and spoke directly with their bank. Now, Tony says, his bank account has been locked and he has to pay thousands of dollars for the fake checks.

"I’m having to work more shifts at work to be able to get caught up and [Tony is] doing a lot as well," Christina said.

"I feel like an idiot," Tony said.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to avoid scams and keep your funds safe

Unfortunately, banks don’t usually refund money if you are a victim of a check scam. Fake check scams take many forms, from promises of a phony loan to being hired for a fake job to being "overpaid" for something you sell.

What many have in common is that you’re given a bad check to cash and told you must buy and provide gift cards in exchange. Since banks often make deposited funds available quickly, you may think the money is safely in your account — but it’s not.

To avoid a similar scam, you should always research a company carefully before you agree to any financial transactions. In this case, News 5 tried to track down Moneypark Finance but couldn’t track down a representative after calling several numbers linked to the company. Journalists even traveled to Houston, Texas, to visit the address listed on the company’s website — but it didn’t exist. There was a hotel standing where the address would have been, with no sign of a Moneypark Finance inside.

Be wary if any business asks for anything other than a conventional means of payment.

"Anybody telling you to print checks, anybody telling you to buy gift cards … if they have a special payment method in mind, it’s probably a special case of being scammed," Ryan Lippe, Consumer Educator with the Ohio Attorney General’s Office, told News 5.

Lastly, avoid doing business with any company that pressures you to act quickly or calls you out of the blue. If you get a phone call from a company asking for money or financial information, the best thing to do is just hang up.

Scammers "want you to act fast," Lippe said. "They want you to think flat-footed. They don’t want you to be thinking with a rational mind."

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Aside from saving for retirement, one of the best things you can do with your money is build an emergency fund. Life happens, and a designated stash of cash can come in handy when you’re suddenly hit with a major car repair or a medical emergency.

Take Kerry, for example. Kerry, a self-employed artist that earns roughly $80,000 a year, was wise enough to create an emergency fund. But thanks to a major home repair that wound up being quite costly, her emergency fund is down to $1,000.

Having experienced the benefit of emergency savings first hand, Kerry knows she needs to rebuild her savings before another potential bump in the road puts her in debt. With this in mind, Kerry is left wondering if she should pause her retirement contributions to rebuild the emergency fund.

To figure out what’s best for Kerry, let’s get into the numbers.

Arguments for and against pausing retirement contributions

First things first, pausing contributions to your retirement savings is generally a bad idea for most people, especially if you have an employer that matches contributions to an RRSP account.

Since Kerry is self-employed, she doesn’t get that matching contribution, so she wouldn’t be giving up as much if she were to pause retirement contributions for a while. She would, however, be losing out on the tax breaks that she would receive from contributing to her retirement accounts, as well as the compound interest that the invested money would earn.

Pausing her retirement contributions, even for a short period, could make a significant difference in Kerry’s retirement nest egg.

At the same time, since she’s self-employed and may face a greater risk of financial problems without emergency savings, there’s a solid argument to be made that Kerry should pause her retirement contributions while she shores up her emergency fund. Otherwise, she could risk going deep into debt if she doesn’t have the money to take care of another major emergency expense.

So, what should Kerry do? One option is to temporarily pause retirement contributions and save up for a mini-emergency fund, then begin splitting her extra money between retirement investments and emergency savings until the latter fund is back to where it should be.

This could be a good approach as she could give herself an financial cushion to fall back on and wouldn’t have to pause retirement contributions for too long, allowing her to slowly build up both her retirement and emergency accounts at the same time.

But if Kerry prefers to maintain her retirement contributions while rebuilding her emergency fund, she’s got to get serious about saving.

Shoring up emergency funds without putting retirement at risk

Unfortunately for Kerry, the cash that she tries to save for her emergency fund is going to have to compete with her living expenses. This makes reallocating her money a little harder to do, but that doesn’t mean it can’t be done.

In order to rebuild her emergency fund, Kerry should keep an eye out for any potential options to save some money or boost her income. Here are a few ideas to help Kerry with stashing some cash away for emergencies.

• Budgeting: The first thing Kerry should do is establish a budget that accounts for all of her necessities, while also allowing her to put some money away for her emergency fund. Creating this budget, however, may require a few sacrifices.
• Cut down on spending: As mentioned above, Kerry may have to make some changes in order to save money for her emergency fund. Making meals at home, reducing electricity use, taking advantage of public transportation and cancelling pricey streaming subscriptions are all ways that she can cut down on spending.
• Consider working a side gig: Sometimes cutting down on spending to save money is easier said than done. If Kerry finds this to be true, picking up some extra work on the side could be the solution. Driving for a rideshare service, delivering packages and pet sitting for neighbors are all decent side hustles that could allow Kerry to save some money without sacrificing anything from her personal life and set her own working schedule.
• Sell used items: This could be a good way for Kerry to boost her income and save some money. Depending on what she has that she’s willing to part with, selling used items could fetch a decent return that Kerry could then put straight into her emergency fund.
• Save your windfalls: Putting away cash that lands on her lap, such as a cash birthday gift or tax return, is another good way for Kerry to add to her emergency fund.

In the end, it’s up to Kerry to figure out what works best for her, but the good news is she has a few options to explore.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Alan Culbert just wanted to buy some presents for his grandkids and fix up his car. Since the Harvard-educated 91-year-old veteran and Bay Area resident didn’t have the cash, he took out a $900 loan from Plain Green Loans, unaware that it would lead him toward potential financial ruin.

According to a story from ABC 7News, the Montana-based lender Culbert borrowed from was one of a few companies that accepted his online loan application. Culbert was happy to see the lender advertise an easy borrowing process, with "better rates," and an "excellent" 5-star rating. He took the money, paid back the $900 within two months, and thought he would move on with his life — but that didn’t happen.

"I had no idea there was going to be an interest charge," Culbert said. Sadly, there wasn’t just an interest charge — it was 682%, and Culbert was left with $2,646.69 in interest costs, accounting for more than half his monthly income.

If you’re wondering how this is legal, it’s because the loan came from a native tribe. Here’s why that simple fact left Culbert in a tough spot with no clear idea of what to do next.

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Tribal governments can avoid state usury laws — but some states are taking action

Culbert’s loan came from the Chippewa Cree Tribe of Rocky Boy’s Reservation, but it could have come from one of many native tribes that offer high-interest rate loans. The tribes argue that they have sovereign immunity and are thus governed by federal — not state — lending laws.

That creates a problem because the federal government doesn’t limit what rate lenders can charge outside of a 36% limit on loans offered to active-duty service members. This wouldn’t have protected Culbert, who is a veteran, and, because tribal governments are independent of state governments, California’s 10% cap on most consumer loans didn’t protect him either.

Some states have recognized this issue and taken steps to ensure their residents can’t be charged so much to borrow. Connecticut, Arkansas, New York, Pennsylvania, Virginia and West Virginia have mostly eliminated tribal loans, and Minnesota put a 36% cap in place, while also making it impossible to collect excess fees.

Minnesota’s Attorney General Keith Ellison also filed suit against three separate entities, including officers of the tribal entities.

"Sovereign entities, like states or tribal governments, generally you can’t sue them under a theory of sovereign immunity. But you can hold them accountable if you name their leaders," Ellison said. "When we brought the lawsuits against three separate entities, we named the tribal entities’ officer and said, ‘You got to stop doing this.’ And as a result, we were able to stop that lending."

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Ellison made clear he’d be happy to share his tips for ending these predatory loans with California. If the Golden State takes action and can achieve the success that Minnesota did, people like Culbert could be spared a lot of heartache.

For his part, Culbert isn’t sure how to proceed. He tried reaching out to the company and explaining he was a veteran, but Plain Green Loans wasn’t sympathetic to his plight. In fact, Culbert said their response was: "’Sorry, too bad. You signed a loan agreement, and you owe all this money. It will ruin your credit history, and we will proceed with collections."

With the media spotlighting his plight, Culbert will hopefully find some relief. Still, the veteran is wondering how this could have happened in the first place. "I don’t see how that can be legal, and they can charge that much in this state," he lamented.

How to avoid taking out a bad loan

Since tribal loans are effectively banned in only a small minority of states, vulnerable borrowers risk being contacted by one of these lenders when they apply for a loan of their own. If they take it, they could find themselves facing the same frustrations Culbert is experiencing.

To avoid this fate, anyone borrowing should:

• Independently research the lender to determine if they are reputable
• View aggressive sales efforts on the part of lenders as a significant red flag, especially if the lender is offering tribal loans
• Insist on reviewing a written document that outlines the full terms and conditions of the loan before agreeing to borrow, including the interest rate and total payoff costs

Hopefully, borrowers can avoid predatory lenders by doing this research. Still, vulnerable individuals, like Culbert, will continue to be at risk of such practices until more states (or even the federal government) implement greater control and transparency over tribal loans.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

For many Canadians, retirement means freedom: The flexibility to hit the links whenever the sun shines, or even to take a road trip to visit parts of the country you’ve never seen.

But once you retire and start living off a fixed income, slowly drawing down your savings, you need to be careful about how you spend your money — especially if you’re still carrying a mortgage.

Of course, you’re far from alone in this. In August 2024, Equifax Canada’s Market Pulse Consumer Credit Trends and Insights Report found that consumer debt levels rose to $2.5 trillion in the second quarter of 2024; this is a 4.2% increase since the second quarter of 2023. Card holders carry over $4,300 in credit card balance on average, which is the highest level since 2007.

If you’re just carrying mortgage debt, you’re doing pretty well for your demographic. However, unexpected expensive purchases can take a toll on your budget.

Say you’ve been retired for two years since you packed it in at 65 and all those road trips to visit family have taken a toll on your current vehicle. It’s time to replace it. You’re willing to opt for used, but you’re still feeling a bit of sticker shock at what it costs to buy even secondhand these days.

If you’re now trying to decide if you should borrow for a car, though, you should be aware that you’ll be joining the ranks of retirees with non-mortgage debt. And you’re right to be nervous about doing that, as committing to making monthly payments while you’re on a fixed income can be tough, especially because you’ll have less money to spend going forward once you do that.

If you need transportation, you may feel like you have no choice — but before you move forward, there are a few things to think about first.

How to decide if you can afford a vehicle on a fixed income

The first thing you’re going to need to do is to make sure that your vehicle will be 100% affordable if you borrow for it. You do not want to increase your retirement account withdrawal rate above a safe withdrawal rate, which Morningstar analysts agree is 3.7%, although it used to be 4%.

If you can afford car payments while sticking to a safe withdrawal rate, either because you have wiggle room in your budget already or because you can cut back on non-essentials, then you can go forward with borrowing if you must.

You also can’t forget about the costs of maintenance and insurance, which you’ll want to ensure you can afford on your budget before moving forward. You can get insurance quotes before you buy to estimate these expenses.

Make sure you don’t borrow too much

If you do the math and the car payments, maintenance, and insurance costs seem reasonable, there are still a few caveats to consider.

First, experts recommend you aim to make a down payment of at least 10% if you’re buying a used car and 20% if you’re buying new. This will help you avoid ending up “underwater” or owing more than the car is worth.

If you don’t put money down, the car can depreciate or decline in value faster than your loan balance, and this creates big problems because you can’t easily sell the car or refinance if you need to. You would need to bring cash to the table to pay off your loan.

You also want to avoid taking a very long car loan, as this makes your debt payments last longer and increases your total interest costs, and you’ll want to make sure you understand the terms of your loan, including the total costs over time.

The Globe and Mail reported that the average monthly auto loan payment in 2023 was $880.

To avoid committing yourself to such a big payment, which could become less affordable as you incur more expenses due to the effects of aging, aim to limit your loan to the shortest term possible and the lowest amount possible — even if that means your car isn’t the fanciest.

Alternatives to a car loan in your 60s and 70s

If you find that a car loan is simply too expensive, or if you’re still concerned about how it will impact your finances, you should consider alternatives before moving forward with borrowing.

Looking for a cheap used car you can pay for in cash could be your best option — but remember, don’t take too much out of your retirement accounts and drain your balance. Instead, work on saving over time from your regular monthly income.

Leasing a car could come with cheaper monthly payments, but keep in mind you’re essentially renting a car and won’t end up owning it, and you’re restricted in how much you can drive the car and what changes you can make. You could also get stuck either paying a lot to buy the car at the end of the lease, or leasing for the rest of your life and having ongoing payments forever.

Another option is to secure a lower-interest rate personal loan that you can use to pay the cost of the car immediately, and then repay the loan at a more reasonable monthly cost over a period of a few years. To use this strategy it’s important to comparison shop personal loan rates. Consider using a rate consolidator — a company that aggregates loan offers from multiple lenders. By comparison shopping using a rate consolidator you can often find better loan rates on better terms that fit your consumer profile. Check out Loans Canada one of Canada’s leading personal loan rate consolidators.

If you can’t pay cash for a car or find an affordable one within your budget, then buying a car simply may not be in the cards. Many older adults get discounts on public transportation, and some communities help them out with low-cost or no-cost rides to stores and medical appointments. While going without a car may seem like a pain, it’s a lot better than going without other necessities like food or medicine.

If you do decide to buy, be sure to shop for a car loan before you go to the dealer to see if you can get better rates and terms. Focus on affordability by taking the entire cost into account, not just the monthly payment, and don’t take out a long loan or a loan you don’t fully understand, because you could end up with serious regrets.

Sources

1. Equifax Canada: Economic Pressures Could Impact Credit Performance of Consumers, Especially Young Adults (Aug 27, 2024)

2. Morningstar: How Retirees Can Determine a Safe Withdrawal Rate in 2025 (Jan 7, 2025)

3. The Globe and Mail: High interest rates mean the new normal in vehicle buying is a monthly payment in the $1,000 range by Rob Carrick (July 14, 2023)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The Ventura County Sheriff’s Office has Southern Californians on the alert for a new strain of phone scams that cost one Ojai resident his life savings.

Someone claiming to be a law enforcement agent with the United States Marshals Service called him and told him to send all his money to an out-of-state location.

As KTLA 5 reports, after the Ojai man complied with the instructions, he met with local police and discovered he’d been conned.

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The Sheriff’s Office issued a release warning people to be wary of this and other scams involving government impersonation.

Government impersonation scams on the rise

Their warning is relevant nationwide, as a growing number of con artists impersonating government agents are scamming Americans out of their hard-earning savings.

Last year, the U.S. Marshals Service warned of a spike in similar scams in Cincinnati, as reported on the local station WLWT 5.

Of course, government impersonation scams aren’t limited to phone calls.

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In 2023, the FBI’s Internet Crime Complaint Center (ICC) reported a spike of more than 60% in online government impersonation scams that robbed 14,190 people — the majority of them older adults — of more than $390 million in savings.

What can you do if you’re scammed?

If you’re the victim of an impersonation scam (whether it’s someone posing as a federal agent, IT professional or a bank rep) you can try to get your money back.

But it’s important to act fast.

The Federal Trade Commision advises that you immediately attempt to stop payment or reverse the financial transaction.

Do this by contacting the relevant credit card company, financial institution, wire transfer company or money transfer app immediately. A credit card company is likelier to do this. If you sent cryptocurrency, you have no chance of recovery.

While you’re dealing with these financial institutions, change your account numbers and freeze your credit so no one can open new credit in your name.

Contact Equifax, Experian, and TransUnion (the three major credit bureaus) to alert them of the scam.

Report the crime to local police and the Federal Trade Commission. This will help authorities investigate these crimes and warn others if fraud is occurring.

How can you avoid being scammed?

Anyone can fall victim to a scam, but you can reduce the odds by following these tips:

• Understand that people can spoof numbers so it looks like they’re calling from a government agency (or bank or even your family). Look up the official phone number to confirm legitimacy and call back if necessary.
• Be aware that no legitimate business or government agency requests payments via cryptocurrency, money transfer app, or wire transfer.
• Do not provide remote access to your financial accounts or account information via phone or email unless you initiated the call.
• Do not wire or give money to someone you don’t know and never mail cash to anyone.
• Talk to a trusted family member or a banker before wiring any money in a transaction you didn’t initiate.

Finally, resist pressure to act quickly. Time pressure is something con artists use to get their victims to hand over cash before they can think things through.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

“Do or do not, there is no try,” were the wise words of Yoda — and in 2018, Mike O’Dell took them to heart.

He drew a Star Wars stormtrooper on a large sheet of graph paper, cut the pattern into sections, sewed the fabric onto the paper and began quilting over the design using a process called foundation paper piecing.

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As a new quilter, he found the process easy. That success sparked an idea: license images and create quilting kits to sell online. The idea blasted off. Last year, he sold $1.25 million worth of his kits — branded Legit Kits — on Shopify, and earned another $150,000 selling quilts through the now-bankrupt Joann Fabrics.

While O’Dell’s side hustle has been more successful than most, his story still offers inspiration — and practical advice — for others looking to launch their own ventures.

Rebellions are built on hope

O’Dell told CNBC Make It that he devotes one day a week to his side hustle while working four days a week as a nurse anesthetist. His full-time job pays him $240,000, so he’s not planning to give it up anytime soon.

"It’s kind of hard to beat an anesthesia salary," he said. "I’ve got three kids, and I want my kids to go to college."

Balancing both jobs has been challenging. O’Dell admits to losing sleep and feeling stressed. But his creative work helps him cope with the more intense pressure of his hospital job.

"The burnout that I feel at the hospital fuels my energy to do the other thing for myself," he said. "It turns the volume down when everybody’s mad at work. I hear it, but I’m like, ‘I’m not going to manage my people that way.’"

Despite Legit Kits bringing in over $1 million last year, O’Dell says the business isn’t profitable enough for him to quit his day job just yet.

"You don’t really get to keep most of the money that your business makes," he explained. "It goes right back into it. When we were consistently breaking $100,000 a month in sales, I was like, ‘Yeah, this is it. But then you’re spending $100,000 a month, too.’ "

This year, he plans to pay himself just $50K from his business, although he hopes that the number will grow as he increases marketing efforts, hires for custom work and tries to expand into more retail stores.

While it may not yet match his hospital salary, O’Dell values the flexibility and reduced stress that Legit Kits could eventually offer if it continues to grow.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The Force will be with you, always

O’Dell believes there are many opportunities to start a successful side business — it’s just a matter of finding one that fits your skills and passions.

One of the easiest ways to start is to use platforms designed for part-time work. Apps like Uber, Lyft, Thumbtack, and Rover make it simple to earn cash by offering services such as ridesharing, handyman tasks and pet sitting.

However, these platforms often cap your earning potential. If your goal is to turn your side hustle into a substantial business, you may need to offer more specialized skill, — such as freelance writing, tutoring or engineering — or identify a specific market need and build a business to address it.

Think about what your strengths and interests are. What gaps are there in the market that you might be able to fill? You might sell products on Shopify or Etsy, or create your own website and use social media to attract customers.

As O’Dell advises, it’s important to set clear goals so you know what you’re working toward.

You’ll also need to manage your time carefully to avoid burnout. Most people find that 10 to 20 hours a week is manageable alongside a full-time job. And, like O’Dell, you should be prepared to reinvest your profits if you want to grow your business.

If you’re serious about success, research the market and craft a business plan that outlines your path to profitability. That way, your million-dollar idea stands a better chance of actually earning a million someday.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Homeowners in New England are at risk from a devastating scam that could destroy their financial security. Massachusetts-based officials from the FBI recently sounded the alarm about the crime, urging people who own property to be on the alert.

"Folks across the region are having their roots literally pulled out from under them and are being left with no place to call home," Jodi Cohen, special agent in charge of the FBI’s Boston Division, said in a release on April 1.

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The scam that residents are falling victim to is known as quitclaim deed fraud, home title fraud, or home title theft. It has been on the uptick in the New England area, and it is devastating because it targets what is, for most people, their most valuable asset: their home.

Here’s how the scam works, and what you can do to avoid it and keep your own home secure.

New England homeowners are suffering big losses

Home title fraud can take different forms, but it often starts with forged documents. Scammers use those documents to show that ownership of a property has changed hands.

Once they appear on paper to be the owner of the home, scammers may sell the property or vacant land, rent out the property, or take out a mortgage on the property and walk away with the funds without making payments. Often, the homeowner is none the wiser about any of this happening if they don’t live in the house full-time.

According to the FBI, scammers — called title pirates — usually look through public records to find property that is not mortgaged or that is vacant. In other situations, people target their own family members since they already know details about the property.

The scammers sometimes involve unsuspecting real estate agents who sell the home without knowing they aren’t dealing with the real owner. Meanwhile, when the real owners eventually find out, they’re forced to go to court to try to recover what’s theirs.

While it may seem far-fetched that someone could steal a property by changing some paperwork, the reality is that this happens far too often — and cases are on the upswing in the New England area. The FBI’s recent warning to homeowners provided details on just how often home title fraud is happening, and the numbers are shocking.

Between 2019 and 2023, for example:

• 262 Maine victims lost $6,253,008 to home title fraud.
• 1,675 Massachusetts victims lost $46,269,818.
• 239 New Hampshire victims lost $4,144,467.
• 224 Rhode Island victims lost $4,852,220.

Nationwide, during this same period, there were a total of 58,141 victims that reported $1.3 billion in losses. And, things may be even worse than they seem, as not every victim reports it or even realizes they’ve been scammed.

And, it’s not just homeowners who suffer from these crimes.

If a defrauded buyer purchases a property that an illegitimate owner sold, they don’t get to keep the house once the issue is discovered — and they may never recover their funds from the scammer who sold the property to them.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to protect yourself from quitclaim deed fraud

The FBI has some tips for owners and realtors to try to avoid this type of fraud and protect their assets. Specifically, homeowners should:

• Monitor online property records to make sure no changes to the deed occur.
• Sign up for title alerts with your county clerk’s office, if they’re offered.
• Regularly drive by properties you own but don’t living in, or hire a managing company to do the same
• Ask neighbors living near vacant land or property to notify you if they notice suspicious activity
• If you stop getting utility bills, contact the providers and find out why

Meanwhile, real estate professionals are advised to do in-person identity checks, and request copies of documents only the true homeowner would have (like original surveys) and send a certified letter to the address of record on the tax bill when buying or selling properties. Agents should also call to verify if a public notary actually signed documents and they should avoid remote closings when possible.

By following these best practices, you can help avoid becoming one of the thousands of victims of quitclaim deed fraud who end up suffering huge losses — and dealing with a ton of financial stress and hassle in trying to recover them.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Work-from-home jobs can provide valuable income for people who are unable to work a traditional job.

For Mildred Bedar, a Houston resident, her work-at-home position helped her pay the bills, until the company disappeared without sending her a paycheck.

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Bedar said she was hired to inspect shipments from Amazon, repackage them, and send the products to their final destination. She was supposed to be paid $2,900 for her work, with a bonus of $20 for every package that she handled.

What she was ultimately paid, however, was nothing, putting her at serious risk of losing her home. Here’s how she became a victim of a work-from-home scam.

How the work-from-home scam worked

Bedar said she worked for the company that hired her for months, only to have the business vanish before her scheduled payday, leaving her in a bind.

"I’ll be homeless if I don’t get that money," Bedar told Fox 26 Houston. "I’m a 68-year-old woman with her service dog out on the street or her car is not something I would think about."

It’s unlikely that Amazon shipping will come, however, because the Postal Service and the Better Business Bureau believe that Bedar had inadvertently been duped into a "reshipping scam." These scams involve products acquired illegally and are then laundered through multiple shipping steps to hide their origin.

A spokesperson from the Better Business Bureau, Leah Napoliello, explained the scam and the unfortunate fallout for Bedar.

"If she has not been paid and suddenly the business has gone dark — there’s no evidence they’re still operating — and there’s no way to contact them to request payment, then that is very suspicious," Napoliello said.

There’s little Bedar can do to recover the promised paycheck, as the company was not a legitimate one in the first place.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to avoid work-from-home scams

While Bedar is unlikely to get her money, others can learn from her experience and avoid work-from-home scams.

Some red flags to watch out for that could suggest a job is not legitimate include:

• A company that expects a lot of work upfront before you get paid
• Pay that seems too good to be true for the expected work
• Companies that ask you to pay upfront to be considered for the job
• A business without a strong online presence, like a LinkedIn page or company website
• Getting hired without an in-person interview process in which you speak to someone via phone or Zoom
• Complaints about the company in online forums or online review sites

If you spot any of these signs, you should move onto opportunities with a more reputable employer who is more likely to pay you.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.