The Internet has become a great recruiting tool for work-at-home prospects, but also allows scammers to hide their identities and post phony "testimonials." Most work-at-home scams involve the same ploys, including the following.

"Bait-and-switch" schemes requiring upfront payment for materials. Victims may pay an initial cost and then not receive the promised supplies, instructions or "client" leads." Examples of these scams include stuffing envelopes, assembling crafts, entering data and billing medical costs.

"Check-forwarding" scams in which victims receive a check for promised or completed work-only to be asked to wire a portion of it back to the scammer. The received check inevitably proves to be counterfeit, and banks hold victims responsible; victims may also face check fraud charges. Scammers usually operate from online job sites, where they advertise for U.S. agents for phony overseas companies.

Mentoring programs. "[Scammers] place advertisements in local newspapers to 'Start Your Own Business,' offering a $69 startup kit in any of about a dozen different opportunities," notes Kevin Farrell of the Lee County Sheriff's Office in southwest Florida. "But once that money is sent, the kit says you need to pay $650 more to have a mentor give you personal instructions over the telephone." Farrell notes that in his area, with its large retiree population, such work-at-home scams seem to target older people.

Rebate processing. In this ploy, says an AARP spokesman, victims answer job ads, thinking they will process rebate forms for leading companies. "In reality, these jobs instead involve placing advertisements on the Internet and selling products. Victims pay upfront fees and are promised their money back if not satisfied. What we're seeing is they don't get their money back."

Envelope Stuffing - Instead of receiving the expected envelopes, you get promotional material asking you for cash to send you details on money-making plans. These plans usually include instructions asking you to place the same ad in newspapers or magazines. You must constantly recruit other people doing and offering the same plan.

Assembly or Craft Work - You have to pay hundreds of dollars for instructions and materials and many hours of work assembling toys, or crafts for a company that has promised to buy them. However the company decides not to pay you because your work is not up to their standards. Now you're left with merchandise you can't sell. The company makes money selling you the starter kit, not selling the assembled items.

Online Home Business - This is one of the top rip-offs on the Internet. You send money in exchange for information about starting a home business. They promise to provide you with all the training and materials you need. Instead, you get a useless guide about data entry, word processing or other related work. Sometimes the company sends you a disk with free government web sites or other home business opportunities that require more money.

Medical Billing Service - You invest from $2,000 to $8,000 for everything you need to start your business. They promise you medical billing software and a list of potential clients in your area. However the software you receive is just a variety of forms and collection letters that anyone could create. The list of companies they send you are not clients but names and addresses from a phone book.

These scams take advantage of your desire to earn a good income, get rid of your boss, set your own working hours, etc. Nevertheless, you must use your common sense and remember if it sounds too good to be true, it probably is. Always verify the legitimacy of the company you're considering by searching the Better Business Bureau's site, www.FTC.Gov or other Consumer Protection sites.

The bottom line: Be suspicious of any job opportunity that requires any upfront fees or pays you with checks that require a Western Union or other wire transfer. According to an October 2007 report by the Federal Trade Commission, about 2.5 million Americans - nearly 1 percent of the entire population-fall for work-at-home scams each year, and many are repeat victims. With today's bad economy, there's no indication that's about to change.

If you've already fallen victim, contact your state attorney general's office and your local consumer protection office. Also, alert the newspaper or online job site where you saw the job advertised.