Business Opportunity Scam
A fraudulent offer presenting a fake or grossly exaggerated business venture — often promising high returns for minimal effort — that exists primarily to extract upfront fees or sell worthless materials.
Also known as: work-from-home scam, get-rich-quick scheme, franchise fraud, turnkey business scam
Last reviewed: 1 June 2026
Business opportunity scams exploit the appeal of financial independence. They advertise turnkey businesses, distributorship arrangements, franchise-like setups, or online income systems that promise extraordinary earnings with little experience or work required. Victims pay upfront fees for starter kits, training materials, territory rights, or inventory — then find the 'business' cannot generate meaningful income.
Many business opportunity scams blur into multi-level marketing schemes, requiring participants to recruit others to earn commissions rather than selling any genuine product to real customers. Others are pure fabrications: the products do not exist, demand is vastly overstated, or the market is already saturated with other participants who bought the same 'exclusive' territory.
Regulatory bodies in the UK (FCA, Trading Standards) and US (FTC) require business opportunities above a certain threshold to provide disclosure documents before sale. Warning signs include income claims that cannot be independently verified, pressure to act immediately, and testimonials from unverifiable individuals.
Examples
- An advertisement promises £5,000 per month working from home selling health products, but the only people making money are those selling starter kits to new recruits.
- A 'proven online store system' costs £1,000 for setup; the products cannot be sold at a profit and the promised training is generic material freely available online.