Monday, July 4, 2016

How to of the Day

How to of the Day


How to Account For Deferred Revenue

Posted: 04 Jul 2016 05:00 PM PDT

Deferred revenue (also called unearned revenue) refers to money received by a company before it provides the related goods or services to the customer. It is shown as a liability on the balance sheet.[1] Companies of all sizes and industries commonly enter into transactions involving deferred revenue. You can easily learn how to record deferred revenue properly with some understanding of the underlying accrual accounting concepts behind it.

EditSteps

EditDetermining What Revenue to Defer

  1. Familiarize yourself with the accrual basis of accounting. Deferred revenue is an aspect of what is called the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded on the income statement when they are earned rather than received.[2] This contrasts with the cash basis of accounting wherein the opposite is true.[3]
    Account For Deferred Revenue Step 1.jpg
  2. Understand why you need to defer revenue. Accrual-based accounting requires you to defer unearned revenue because of a principle called the revenue recognition principle. The revenue recognition principle requires accountants to show revenues on the income statement in the period in which they are earned, not in the period when the cash is collected.[4]
    Account For Deferred Revenue Step 2.jpg
    • This requires a differentiation between realized and earned revenue. Realized revenue is revenue received regardless of whether the company has fulfilled its obligations to the purchaser. Realized yet unearned revenue is the subset of revenue which must be deferred.[5]
    • For instance, say a magazine company receives a twelve-month subscription for a monthly publication. The subscription costs $120, and the subscriber pays the entire cost of the subscription up front. Thus, before the company delivers any magazines to the customer, the $120 is classified as deferred revenue and represents a liability to the company. In other words, the revenue has been realized but not yet earned.
  3. Identify transactions involving deferred revenue. Deferred revenue deals with revenue realized in one reporting period but earned in the next. The reporting period can be monthly, quarterly, or annually depending on the company. Identify all customer orders as of the reporting period end date that have not been fulfilled, yet for which the company has already received payment. Report any transaction meeting this criteria as deferred revenue.[6]
    Account For Deferred Revenue Step 3.jpg
    • This includes items that have been paid in full but await shipment, as well as subscription-based revenues where the subscription period is still ongoing. Once these transactions have been identified, the accounting staff must calculate and record the amount of the deferral.

EditRecording Deferred Revenue

  1. Record the deferred revenue. Recording deferred revenue applies to the company's balance sheet. The company receives cash (an asset account on the balance sheet) and records deferred revenue (a liability account on the balance sheet).[7]
    Account For Deferred Revenue Step 4.jpg
    • In the example from Part 1, the company receives a $120 advance payment relating to a twelve-month magazine subscription. When the company receives payment (but before delivering the subscription), the company must record the entire amount of the payment as deferred revenue. To do this, the accounting staff will post the following journal entry:
      • Debit Cash $120
      • Credit Deferred Revenue ($120)
  2. Record the earned revenue. This journal entry affects the balance sheet and the income statement. This entry essentially updates the entry in the previous step by reducing the balance sheet liability and transferring the amount to the income statement.[8]
    Account For Deferred Revenue Step 5.jpg
    • Consider the magazine subscription example. After the first month of the subscription, $10 ($120 / 12) of revenue has been earned and the deferred revenue amount is now $110. The accounting staff will transfer $10 from the deferred revenue account to the earned revenue account using the journal entry below:
      • Debit Deferred Revenue $10
      • Credit Subscription Revenue ($10)
  3. Continue adjusting the ledger until all the revenue is earned. The company's accountants must keep adjusting the balance sheet and income sheet over the course of the service.[9] The adjusting entries will continue until the company has fulfilled its obligation of goods or services and the liability to the customer reaches zero.
    Account For Deferred Revenue Step 7.jpg
    • Using the previous example, at that time, the deferred revenue account will have a balance of $0, and $120 of revenue will have been recognized.

EditTips

  • While accrual-based accounting is handled similarly in different countries, the exact process taken to defer revenues will vary based on each country's reporting standards. The examples above are consistent with U.S. Generally Accepted Accounting Standards (GAAP).
  • Sales contracts can take many different forms, from point of sale purchases to subscription revenue and contract milestones. If you deal with an unusual or complex sales contract, determine the proper revenue recognition techniques before recording revenue or deferrals under the contract.
  • The accountant should balance the need for recording deferrals with the extra work of calculating them. If your company will recognize 100% of revenue in the same month as the initial deferral, it may be possible to skip recording the deferral. This is true in most cases where the revenue is realized and earned in the same accounting period.

EditThings You'll Need

  • Accounting software

EditRelated wikiHows

EditSources and Citations


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How to Turn Your Life Around After Depression

Posted: 04 Jul 2016 09:00 AM PDT

Depression can really change the way you look at life. You may have lost relationships, jobs, direction, hobbies, your health, dreams and goals, and your self-confidence. After a depressive episode you can get your life back by: setting attainable goals, increasing your positive social relationships, maintaining your physical health, and coping in healthy ways.

EditSteps

EditSetting Goals

  1. Identify your priorities in life. Goal-setting is an important component of reducing the likelihood of future depression.[1] In order to create positive goals for yourself, you may first need to identify your values or priorities. The deep desires of your heart tell you what will make your life happy.
    Turn Your Life Around After Depression Step 1 Version 2.jpg
    • Make a list of your values or things that you are important to you in life. These might include: family, friends, employment, love, money, and a home.
    • Think of things you've done in the past that you enjoyed and try to figure out how to incorporate those things into your life. Ever had a moment that you wished would never end? Those are the moments you can focus on in your life. This may be times with your partner, kids, close friends, time spent on things you are good at or enjoy (camping, writing, art, music, etc.).
  2. Consider career opportunities. What you choose to do with your life in terms of occupation can have an immense affect on your well-being. After all, you may spend 40 hours or more per week focused on your career.
    Turn Your Life Around After Depression Step 2 Version 2.jpg
    • If your old job didn't work for you, try something else. It's all experience and can help you to grow.
    • Do you want to get a new job soon or later in the future? Think about what kind of occupation you can handle, will be rewarding and enjoyable for you.
    • Be patient. If you don't get a job straight away, think of things that would improve your chances. Do some volunteer work, take a short course or earn some extra qualifications; this can do wonders for your self-esteem and your resume.
  3. Recognize positive activities to set as goals. When you are recovering from a depression it may hard to break the habit of inactivity and get back into the swing of things. However, staying active and busy can help reduce the likelihood that your depressive symptoms will return.
    Turn Your Life Around After Depression Step 3 Version 2.jpg
    • Focus on tasks or responsibilities that need to be completed. For example, you could: wash the car, cook a good meal, mow the lawn, pay a bill, go shopping, clean the house, do some studying, take care of a pet, tend to your garden, the list goes on and on. When you do small things like this it may help you feel more capable over time, and boost your confidence and self-esteem.
    • Think about what makes you feel good about yourself and proud of yourself. Make a list and do one thing on it every day. For example, some positive activities that might result in an increase in self-esteem include: sending someone a card, playing with your kids, giving money to charity, volunteering, getting involved in good causes, getting your hair done, planting a tree, running an errand for your elderly neighbor, or calling a friend you know is having a hard time. When it is done, pat yourself on the back and congratulate yourself on a job well done.
  4. Make a comprehensive list of goals on which you can focus.[2] Once you have identified your priorities and specific activities you want to increase, you can write down a list of these goals. They can be as big or small as you like.
    Turn Your Life Around After Depression Step 4 Version 2.jpg
    • Make sure each goal is a SMART goal, meaning it is: Specific, Measurable, Attainable, Realistic, and Time-limited.[3] An example of a SMART goals would be to exercise three times per week by running for one hour, for the next month.
    • One option is to create a goal or activity hierarchy of 15 items. List the activities from simplest to most difficult. Start by completing the easier goal first, then working your way up to the most difficult goal.[4] A small and easy goal might be to walk your dog, while a large goal would be to get a promotion or a new job.
    • Congratulate yourself on each tiny step you make forward. Reward yourself through positive reinforcement when you make progress on a particular goal. Treat yourself to a spa day, massage, special dinner, or something else you enjoy (that is safe and not drug or alcohol related).
  5. Evaluate your progress and makes changes accordingly. Goals are meant to be constantly evolving. For each goal you complete, you can begin to form new and more advanced goals. If you find that a goal isn't working for you, or you change your mind about it, change it to what you think will be more helpful.
    Turn Your Life Around After Depression Step 5 Version 2.jpg
    • Keep track of your daily activities and goals in a calendar.[5] This can help keep you on track and increase your ability to remember important goals and tasks.
    • Once you complete a goal, make a new one! For example, if your first goal was to lose ten lbs. and now you want to lose a few more, focus on that. Or, if you wanted to exercise more but got stuck in a boring routine of going to the gym, make a goal to go hiking or running outdoors.
    • Try to think positive, even when you experience a setback. Say things to yourself such as, "I had a setback but I will learn from it and do better next time. I know I can do this!" Write this mantra down and say it to yourself daily if that helps you.

EditIncreasing Positive Relationships

  1. Get professional support. When you are recovering from depression it is especially important to get professional help in order to help ensure that you depression does not return, or that it is less severe if it does. Thus, if you have already been attending treatment continue working on your treatment plan.
    Turn Your Life Around After Depression Step 6 Version 2.jpg
    • If you already have a therapist, discuss new goals that you'd like to work on. Make sure you follow through and continue attending your appointments.
    • If you don't have a therapist to help treat your depression, try it. This can be useful even if you aren't currently feeling depressed. A therapist or psychologist can help you reduce the likelihood of worsening depression by using specific interventions, such as Cognitive Behavioral Therapy (CBT), which help to change your thinking to promote lasting well-being.[6]
    • Continue seeing your psychiatrist and taking medication as prescribed.
    • Talk to a medical doctor about your health, diet, and exercise.
  2. Seek help if an addiction is affecting your life. Addiction can worsen the symptoms of depression, making recovery difficult.[7] Whether it be substances, food, gambling, shopping, self-harm, sex, or eating disorders, you can get specialized addiction counseling. It may be necessary to treat the depression and addiction simultaneously, as depression and addiction are often closely linked.[8]
    Turn Your Life Around After Depression Step 7 Version 2.jpg
    • One way to seek help is to speak with your medical doctor, therapist, or psychiatrist. They can give you a referral for chemical dependency treatment. Some therapists even specialize in drug treatment. You can participate in outpatient treatment or inpatient treatment (drug rehab).
    • You can also seek help by joining a 12-step group such as Alcoholics Anonymous (A.A) or Narcotics Anonymous (N.A).[9][10]
    • Recovery from any addiction takes time, but it will be worth it in the end and will help to support your overall health and reduce your depression.
  3. Reconnect. Sometimes during a bout of depression people can lose contact with important friends, family members, and other interpersonal relationships. However, social support is so important to maintaining a depression-free lifestyle, reducing the likelihood that depression will re-occur, and bouncing back from difficult life situations.[11]
    Turn Your Life Around After Depression Step 8 Version 2.jpg
    • Send an email, text, card or letter asking how your friend is doing. Focus on the positive things you're doing in your life, and ask questions.
    • Phone a friend and invite her to meet up for lunch or a coffee.
  4. Join a support group. Social support, especially support from others that are in your same position, can be extremely useful in recovering from depression and continuing to maintain a healthy outlook.[12]
    Turn Your Life Around After Depression Step 9 Version 2.jpg
  5. Make new friends. After a depression you may feel well enough to cultivate new relationships, especially if you have discarded damaging or unproductive friendships. By doing the things you are interested in, you may be able to meet people with the same interests and similar personalities.
    Turn Your Life Around After Depression Step 10 Version 2.jpg
    • Join a church, club, sport team, community college, neighborhood center class, charity, etc.
    • Try Meetup.com, which is a useful website for finding groups of like-minded people with similar interests. Some examples include: singles groups, hiking groups, acting troupes, and rock-climbing enthusiasts.
    • Can't find the right group or club? You can start your own! Try starting a book club. Spread the word amongst friends and acquaintances, put ads up at local libraries, and ask everyone to bring a small plate to share. Or, you could start a fitness club and meet at a park and pay for a personal trainer, splitting the cost amongst the group.
    • Whenever you receive a social invitation, try to say yes. The more times you say yes, the more invites you might receive. Also, for every time a friend invites you to do something, invite them to something the following week. This keeps the balance equal and you both feel valued.

EditMaintaining Your Physical Health

  1. Treat medical problems. Sometimes depression can be related to medical issues, including hyperthyroidism, Parkinson's disease, or Huntington's disease.[13] It may also be a aside effect of medication. If your depression isn't caused by your medical condition, your condition may still affect your mood if you are feeling ill and thinking negatively. It is difficult to be positive when you are in pain or physically ill.
    Turn Your Life Around After Depression Step 11 Version 2.jpg
    • Meet with your doctor regularly if you have chronic medical issues.
    • If you notice an increase in depression coincides with a new medication or other medical treatment, consult with your doctor.
    • Take all of your prescribed medication for medical concerns. It may take a while to find the right one for you. When you start feeling better, keep taking your medication as this may help maintain your health.
  2. Focus on activities of daily living (ADLs). With depression it may be difficult to keep up with daily tasks such as bathing, cleaning, and general self-maintenance (i.e. washing your face or brushing your teeth).[14] Once you have successfully overcome your depression you can begin to get back your basic routine. Taking care of yourself can help you feel better about yourself overall and reduce the likelihood that your depression returns. For example, when you stay in your pajamas all day, it's unlikely that you'll feel like leaving the house and doing something. However, if you take a long shower or bath, take care with your hair and makeup, pick out clothes you feel good in, you may feel much stronger and able to cope with the day.
    Turn Your Life Around After Depression Step 12 Version 2.jpg
    • Make a list of things you can do for self-maintenance. This list might include: washing clothes, shopping for new clothes, washing your hair, getting a hair-cut or style.
  3. Exercise. Exercise can help prevent and reduce symptoms of depression.[15][16] As difficult as it is to put those sneakers on and tie the laces, after you have worked out you may feel ten times better both emotionally due to endorphins that are released in your brain.
    Turn Your Life Around After Depression Step 13 Version 2.jpg
    • Start off with a ten minute walk, and build up to 20. Doing that as often as possible may do wonders for you.
    • If you have trouble getting up the motivation to exercise, try telling yourself, "I'll feel better when it's done." Or commit to just doing five to ten minutes on an exercise bike or treadmill. Sometimes you just need to get over the initial challenge of getting up and moving, and after ten minutes you may feel like running for ten more.
    • If you're after something more challenging, you will feel the endorphins bringing that "high" after a run, gym class, or other aerobic exercise.

EditCoping Effectively to Reduce Recurrent Depression

  1. Positively regulate your emotions. Studies suggest that people who have a history of depression may be more likely to use emotional regulation that actually keeps them depressed.[17] This type of emotional regulation is associated with using negative coping strategies (such as drinking alcohol to excess) which increases depression instead of reducing it.
    Turn Your Life Around After Depression Step 14 Version 2.jpg
    • Avoid rumination. When you ruminate, you replay a negative situation again and again in your mind.[18] While you may be replaying a situation to try and pinpoint what, exactly, went wrong, ruminating tends to only intensify negative feelings and offers little insight.[19] Instead, try asking yourself: "What, if anything, can I change?" Make a list of small, manageable goals that address things that are within your power to change.[20] It may also help to disrupt the thoughts if you go for a walk or exercise.[21]
  2. Catch negative thoughts and change them. Everyone has negative thoughts from time to time. However, the more negative thoughts you have, the more depressed you may feel. This is because our thinking has much to do with how we feel. Instead of believing negative self-talk, you can learn to challenge them and develop positive thinking habits.
    Turn Your Life Around After Depression Step 15 Version 2.jpg
    • Think of your thoughts as hypotheses or fleeting ideas instead of as facts. If you have a negative thought such as, "This situation is terrible. I hate it," question your perception of the situation. This is called cognitive reappraisal.[22] Is it all that bad? Is it really so terrible or can you try to cope with it? It is possible that you can change the way you think about it or find a way to help it be better? Tell yourself, "It isn't so bad. It sucks, but I can deal with it."
  3. Use positive self-talk. Individuals who suffer from depression may get into the habit of self-loathing or negative self-talk. Some examples include thinking, "I'm not good enough. I'm a failure. I'm stupid." If you have similar negative thoughts, these will most likely lead to negative emotions. In order to combat this thinking you can use positive affirmations.[23][24]
    Turn Your Life Around After Depression Step 16 Version 2.jpg
    • An example of a positive affirmation is thinking, "I'm doing the best I can and it's good enough for me. It doesn't need to be good enough for someone else."
  4. Engage in activities that make you feel happy. Leisure and pleasure are an important part of having a positive sense of well-being. Being active can increase your ability to cope with stressful or depressing life events.[25]
    Turn Your Life Around After Depression Step 17.jpg
    • Make a list of pleasurable activities and schedule them in each day. For example you could plan to: watch a movie, read a book, eat a favorite food, go for a walk, take a bubble bath, go to a library or museum, go window shopping, buy fresh flowers, get a beauty treatment or your hair done, or go out to dinner.
  5. Focus on the positive. Sometimes individuals with a history of depression have difficulty focusing on the positive aspects of their lives. Yet, your ability to focus on positive thoughts and activities can increase your positive emotions and decrease depressed mood.[26]
    Turn Your Life Around After Depression Step 18.jpg
    • One way to focus on the positive is to keep a pleasurable events journal with either photos or writing. It can just be a few sentences about one thing that was good that happened that day, or a photo of one thing you found interesting or pretty.
    • Focusing on the positive also has to do with choosing appropriate activities that are going to increase your positive mood. For example, select appropriate viewing material; if you are feeling sad- don't watch the news, or a sad movie. This is just not helpful for people who are already tending to dwell on the negative things of life, it only adds fuel to the fire. So, turn off the news and read a positive and uplifting book. Or, flick straight to the sport section of the paper or the comics.

EditWarnings

  • If you are currently having thoughts of self-injury or suicide, please call 911 or the National Suicide Prevention Lifeline at 1-800-273-8255 in the US.

EditRelated wikiHows


EditSources and Citations


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How to Check if a Company Is Genuine

Posted: 04 Jul 2016 01:00 AM PDT

Scams are an unfortunate aspect of the world we live in. Though it is now easy to make purchases with one click of a mouse, there is also an increased risk that your personal information can be exploited by unscrupulous businesses. A company may seem genuine, but in reality it could turn out to be a scam. Luckily, there are a few things that can throw up a red flag, and help prevent you from providing sensitive, personal information to undeserving scam artists.

EditSteps

EditReviewing a Business's Website to Determine Legitimacy

  1. Check the company's website for a legitimate telephone number and address. If there is no way to contact this company offline, this may be a red flag that the business is not legitimate. Since emails and domain names are easy to obtain, having an email address is not as trustworthy as offline contact information.[1]
    Check if a Company Is Genuine Step 1 Version 3.jpg
    • Remember that both phone numbers and addresses are now super easy to fake. There is a whole industry in providing fake area code and 800 numbers. Even Google now does this, so phone numbers are no longer a sign of a real company. Before doing business, call the local chamber of commerce associated with the address and see if they are a real bricks and mortar company, or simply a referral skimming internet company with a phony address.
    • Search in other cities to see if a supposedly "local business" is using the same website for operations in other localities. You should be wary if you find the same supposedly local business page being used for another location. Usually these copied phony business web pages are used in many cities and are just copied templates. Many have broken hyperlinks for images and links, which is a tip-off that this may be a phony phishing business page.[2]
  2. Browse the company's website for discrepancies and indicators of professionalism. If a website says one thing in one spot, and then contradicts itself in another spot, that's a red flag that the business is not coordinated and may be a scam that was hastily thrown together. If the website is unprofessional (for example, there are stolen images and numerous spelling errors), this shows that little thought or care was put into creating the website, which could indicate a "get rich quick" scam. [3]
    Check if a Company Is Genuine Step 2 Version 3.jpg
  3. Review the website's policy pages. Legitimate companies will almost always have terms of use or terms and conditions pages, as well as privacy policy pages. If they do have terms and privacy policies, read through them carefully suspicious sounding language.
    Check if a Company Is Genuine Step 3 Version 3.jpg
  4. Look for decent content. Phony referral business sites usually don't have much content on their sites and usually have lots of legitimate company and BBB logos on their site to trick you into trusting them. A 'big' tip-off are stock photos or no photos of the company building, employees, or products. Avoid the company if all you see are stock photos of their so-called product, which is one of the easiest way to spot a fake web business!
    Check if a Company Is Genuine Step 4 Version 3.jpg
  5. Consider how the company accepts payments. It's a red flag when a company's website says they only accept payments through insecure or shady methods, such as only by paper check or cash. This is because PayPal and other secondary electronic payment providers are often considered the safest method for paying online businesses. Look into payment methods which will allow you to get your money back if things go sour and do not require the release of unnecessary personal information.[4]
    Check if a Company Is Genuine Step 5 Version 3.jpg

EditDetermining Legitimacy Through Business Registration and Other Documentation

  1. Make a visit to the company's brick and mortar location. There are other ways besides using the internet to determine whether a business is legitimate or not. You can learn a lot about a business by simply visiting its brick and mortar location. Your visit may allow you to communicate directly with management and ownership in order to determine legitimacy.[5]
    Check if a Company Is Genuine Step 6 Version 3.jpg
    • Trade and/or specialty businesses should have their relevant permits, licenses and approved registration documentation clearly on display for customers. If so, check and make sure that these displayed certifications are up to date.
    • Restaurants should have relevant documentation required by the local Department of Health and Sanitation clearly displayed on the wall. Typically, this type of documentation provides the business with a grade, and the presence of such documentation indicates the legitimacy of the restaurant.
  2. Check the registration data for the company website. You can sometimes find the name and information for the person who registered the website, which you may want to use for further research. Determine when the website was created and when it will expire. If it was only created recently and will expire soon, that may point to the website being a temporary cover for a scam.
    Check if a Company Is Genuine Step 7 Version 3.jpg
  3. Research whether the business has officially registered with local, state or federal authorities. Businesses that operate as LLCs, Corporations or under other official business entity vehicles are required to register with the secretary of state where they are operating. Similarly, businesses that pay wages to employees are assigned state and Federal Employer Identification number. A business being listed on a state or federal listing shows that they are likely a reputable business.[7]
    Check if a Company Is Genuine Step 8 Version 3.jpg
    • Review the business's website or promotional materials to see whether they use the phrases "LLC", "Inc", "Corp", in their official business name. If so, you should be able to check secretary of state websites to determine whether the company is properly registered, and thus has the right to use the particular business entity type designation in their name. [8]
  4. Check the Better Business Bureau. The Better Business Bureau (BBB) has both local and national branches that are committed to providing consumers with relevant and useful information regarding businesses operating within their communities. The BBB's website allows you to search for specific business names, and also provides general information regarding scam and fraud trends.
    Check if a Company Is Genuine Step 9 Version 3.jpg
    • A lack of a listing on BBB does not automatically mean the business is a scam. In fact ,some BBB listing pages have become a place where consumers can freely voice complaints about the fraudulent nature of a business, as well as past scams that have occurred.
  5. Use industry organizations to determine legitimacy. Some industries have regulatory bodies they are required to register with in order to maintain relevant licenses and certifications. Local and national industry organizations may provide relevant information to the public about its' members and the specific businesses that have successfully registered with the industry organization. [9].
    Check if a Company Is Genuine Step 10 Version 3.jpg
  6. Use a company credit report to check the legitimacy of a company. Using a company credit report service can allow to determine a company's:
    Check if a Company Is Genuine Step 11 Version 3.jpg
    • Credit score
    • Contact details
    • Financial performance
    • Governance/leadership structure
    • Number of years in operation
    • Past legal judgments brought against the company

EditUsing Customer Reviews to Determine Legitimacy

  1. Use Google to search for the company name. You can locate reviews and other information about the company and whether it's a scam or not. If you don't see anything, try the search term: "[company name] scam", and see if results turn up that way. Although it's possible to manipulate a positive online presence, bad feedback is harder to hide.[10]
    Check if a Company Is Genuine Step 12 Version 2.jpg
  2. Check the company's customer reviews on consumer review platforms. Unlike personal blogs, consumer review platforms reflect the opinion of various customers and usually provide an unfiltered view of a company's overall reliability. Trustworthy consumer review platforms will not censor reviews in any way and fight hard against the posting of fake reviews. [11]
    Check if a Company Is Genuine Step 13 Version 2.jpg
  3. Ask friends about their past experiences with the company. Some of your best review resources are the people you live, work or play with. Take the time to ask your friends and family if they have any experience with the company you are researching, and whether their experience was satisfactory or out of the ordinary.
    Check if a Company Is Genuine Step 14 Version 2.jpg

EditWarnings

  • Never pay those you do not have a preexisting relationship with via wire transfer systems such as MoneyGram, Western Union or other companies. This a very common scam used by those who are operating abroad, because they can pick up the money from multiple locations throughout the world. Also there is no way to reverse these transactions once the victim realizes they have been cheated.
  • Your best option is to make payments via Paypal, or via other certified and secure and electronic payment systems. This way you do not have to give sensitive and confidential personal information directly to the seller. Instead such info should only be provided to certified third-party payment intermediaries, in order to create a paper trail of the transaction, and also to ensure that the seller has been properly certified and vetted.

EditTips

  • Don't assume a company is not legitimate simply because they do not have a significant online presence. If you're looking at a business that is run from home, or if it's a really small company, they may not have business listings or long-lasting domains. Some people cannot afford to pay for them on top of other business expenses.
  • When you look up reviews, be smart about whose reviews you trust. Some people don't follow all of the directions they were supposed to, or misunderstand the product or terms, and then complain even though it was their mistake.
  • Don't assume a company is not legitimate because they do not make their website's domain owner name public. Some web hosts choose to keep this information private, and the decision to do so doesn't necessarily meant that the website and/or business is fraudulent.

EditSources and Citations


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