From my extensive experience in the Entertainment Industry, I have determined that the common denominator in almost all acting and modeling scams is upfront fees.
Research into U.S. laws to protect consumers has shown almost every acting and modeling agency law, regulation or rule ever enacted in America prohibits upfront fees. Precedent lawsuits against acting and modeling companies by federal and state government as well as individuals have invariably been filed against those which charged upfront fees.
One of the most recently enacted entertainment industry laws was drafted by a former child actress, who introduced the Advance-Fee Talent Services law. Sheila Kuehl did so at the request of Los Angeles City Attorney James Hahn, because his office had prosecuted modeling/talent scams cases in which "hundreds of parents paid millions of dollars in advance fees to frauds that promised that their children would become stars."
The legitimate talent agency does not charge a fee payable in advance for registering you, for resumes, for public relations services, for screen tests, for photographs, for acting lessons, or for many other services used to separate you from your money. If you are signed as a client by a legitimate talent agency, you will pay such agency nothing until you work and then 10 percent of your earnings as a performer — but nothing in advance.
The importance of securing legitimate and responsible representation cannot be emphasized enough. Agents who ask you for money up front, whether it be for a photo session, composite, head sheet or any other promotional tool, should be avoided. A reputable agent will not ask you for money until you are making money - booking work as a result of the agency has made for you. That is the time to invest in a composite and in the agency book and head sheet. Even then you will probably not be asked for funds up front. These promotional expenses will be deducted from future paychecks.
Things to Remember When Trying to Recognize a SCAM:
Agents do not advertise!
According to the indusrty's EIC Code of Ethics, talent and background agents cannot advertise to the general public.
Agents do not provide photographic services or give classes!
A reputable agent may suggest specific photographers or classes to you but cannot require you to use them.
Children and extras do not need professional-quality photos!
Babies and toddlers never need professional photos. Extras need to provide a snapshot to their agents. Children under the age of ten do not need professional photos unless they are working regularly.
An agent cannot guarantee work!
An agent who tells you that they have work for you must give you a copy of the signed contract along with the details of the job (who is hiring you, what you will be paid, etc.)
Agents are not casting directors!
Agents earn commissions when their clients work. Casting directors are paid by the production and never take money from performers for any reason.
Agents specialize!
Agents usually represent actors, extras or models. Be wary if the agency claims to represent all of these categories.
A principal agent will rarely represent you if you have no experience or training!
Legitimate talent agents usually require actors to have some professional training and some theater or film experience. Only background agents will represent inexperienced people who have no training and will generally try to get them non-speaking roles as extras.