I work full time as an IT manager whilst my wife has worked as a legal secretary and recently spent 2 years working as a medical secretary. We cannot find her a job that allows her to both drop and pick up our 6y old daughter and heard about digital transcription services. Has anyone had any experience of these and know any good companies to sign up with. Also what are the pitfalls and scams ect.

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Not all of them are scams, but she would have to take college classes and work in an office setting for a minimum of 1 year before anyone would hire her.
I recommend you to check this site for your questions and other concerns.