Jersey parents are being urged to only use registered childcare providers.
Jersey Child Care Trust (JCCT) said parents were not legally protected if their children were left at an unregistered carers home.
The Day Care of Children Law applies as soon as a child is taken to another home, for more than seven days a year.
JCCT said it was aware that some unregistered carers were operating for £1 an hour, leaving parents unprotected.
JCCT executive director Fiona Vacher said: "Without registration, if there are any issues regarding supervision or the welfare of the children, the parents will have no recourse to any remedy under the law against the unregistered carer.
"We would urge both carers to register and parents to check out the credentials before leaving their children, however 'cheap' the option may seem to be."
The trust said that people could register to become a carer through the States of Jersey.
If a child is cared for in their own home it is considered a private matter.