You very confidentially carry out dealings with a business only to find out that the whole thing was a scam and you have been played out a lot of money and now your life is in danger and there are debtors out to get you.

So many around the world who say the same thing, they are often frightened to report the scam due to revenge and death threats.

The authorities encourage victims of business scams to report their case so that the perpetrators can be brought to justice even if they have to travel half way across the globe. Often these scams are being operated from other countries, the most popular being Nigeria and Jamaica.

First let's look at how these business scams operate. Business scams often operate on three common elements, which is the offer to buy, the request for the payment and thereafter the promise to provide the logistics to run the business.

These business scams are advertised in the local newspapers, websites and via email with a promise to earn plenty of money as legitimate businesses. There is even a promise to give your money back. These business scam websites carry very convincing success stories. Most of these business scams offer work at home opportunities.

People who have fallen for these business scams say they have paid the upfront fee, registration fee and even submitted a few work assignments to be later told that their work does not meet the employer's expectations.

The best way to prevent and stop a businesses fraud is to report it. Here are a few tips that you can use to report such a scam:-

- First complain to the local police department and file a report

- Then check if there are any complaints filed with the Better Business Bureau.

- Give them all the evidence you have of the business scam

- Call your insurance company and check if you are covered for business opportunity defaults

- Find yourself a attorney and get some legal advice

- Make sure that your attorney and police work together to solve your case

- Visit your home office website to find out how to deal with business scams and frauds

- Join a forum for victims of scams to find out what others are doing about business scams

- If you can get the media involved do it

- Find out if there are others who are willing to testify against the same scammer/scam.

Apart form this there are several organisations that you can make your complaints to, such as:-

- Federal Trade Commission

- National Fraud Information Centre

- Consumer Fraud - US federal Government Centre

- State Attorney General's Department

- The National Consumer Complaint Center

- Better Business Bureau and

- Complainusa.com

The Federal Trade Commission is now working on a rule that regulates biz ops under the franchise rule. The rule requires seller to disclose information on the seller like in a franchise opportunity. This is to make people aware of the scams there are being carried out and to protect people from scammers who run work at home opportunity scams.