For a parent, it sounds like the best of both worlds: working from home so you can make money AND spend more time with your kids.

   The lure of work-at-home companies is especially enticing at a time when many moms can't afford not to work any more and some may even need a second source of income.

BY JULIE LANDRY LAVIOLETTE. Read Julie's money-saving blog, Talk About Cheap, here. Follow her on Twitter.

   The so-called opportunities scream out from all over: ads promising you'll rake in big bucks by stuffing envelopes or being a "mystery shopper,'' or by hosting parties to hock cosmetics, cookware, jewelry, even sex toys.

   But how do you know what's legitimate and what's a scam?

   In a National Consumers League study released this year, 31 percent of Americans surveyed said they are more likely to look at work-at-home opportunities because of the economic downturn.

   And more scammers than ever are out there looking to take advantage.

   "Work-at-home opportunities are attractive to scammers because scammers have easy access to the Internet, job postings, even the classifieds in newspapers,'' said John Breyault, vice president of public policy for the National Consumers League. "There are a lot of pyramid schemes out there masquerading as multi-level marketing.''

   The big difference between the two, he said, is while multi-level marketing companies such as Amway and Mary Kay offer legitimate products for sale, pyramid schemes offer nothing but promised compensation for recruiting others.

   Take the old envelope-stuffing scheme that has been around for ages, Breyault said. Recruits are encouraged to place ads to lure others to pay a fee and in turn, place their own ads. No products are ever sold.

   Neil Offen, president of the Direct Selling Association, a national trade association based in Washington D.C., said there are two questions you should ask before venturing into business with a direct-sales company:

1. Do you risk financial loss by being involved with the company? "If you have to buy anything, ask, 'Will you buy this back, and at what price?' ''

2. Is the money you're making coming from the sale of a product or from recruiting people?
"If it's from recruiting people, it's a scam,'' Offen said.

   The Direct Selling Association boasts high-profile members such as Avon, Pampered Chef, Mary Kay, Amway and Herbalife. It has a strict code of ethics that member companies must follow, Offen said. One of its key edicts is its buyback program. If an individual quits, the company must buy back any inventory purchased in the prior 12 months for 90 percent of its value.

   Offen said direct selling is a growing trend globally, especially with

   "There are 15 million people in the U.S. involved in direct selling,'' he said. "It is growing very rapidly. We're looking at a major surge of people going into the business.''

   About 90 percent of the direct sales force is made up of women and about 77 percent are married. More than half have attended college.

   Offen said home-party type businesses are generally a safer bet when considering a direct-selling venture because a bonafide product is sold.

   New trends in home party businesses include making confections with Dove Chocolate Discoveries or planning home decor with Southern Living at Home.

   Upscale companies such as Swarovski crystal and Silpada, which sells sterling silver jewelry, also are on the rise. Even Jockey is getting in on the act, selling underwear and athletic wear through home parties.

   The key is to thoroughly evaluate any opportunity. And if it sounds too good to be true, it probably is. Experts say with unemployment and foreclosures on the rise, many families are grasping at opportunities they wouldn't consider in other financial times.

     "If people weren't so desperate to make money and pay their house note, they wouldn't be so likely to fall for these schemes,'' Breyault said.