Email scams

The Internet has opened up a fantastic way for many to make an online revenue, directly from home.

Unfortunately it has also opened up for MLM(Multi-Level Matrix or Multi-Level Marketing) pyramid schemes to also flourish.

As with many financial scams especially via the Internet, enticement is obtained soley on the lucrative monies and revenues that could be generated, playing on the dreams, and aspirations of the desperate and vulnerable who are naive enough to believe such a scheme is the answer to their prayers. Often recruits have to pay an excessive amount to join the MLM scheme in the first place, and have to get others to join likewise, and get a percentage of their joining fee as their commission. Once a victim has joined they will find out that there was no real tangible product, no insider knowledge to provide a legitimate source of income, no training or coaching or any legitimate teaching experience as promised, they will realise the only way they can recoup their money is by getting other gullible recruits to join the scheme, just as they did themselves, and obviously the easiest way is to use the same materials that caused them to join the scheme in the first place (which coincidentally counts as the one-on-one mentor ship). Only the ones at the top of the pyramid make any money, eventually the whole pyramid falls as it cannot be sustained, the demand simply outweighs the resources.

Many financial analysts reading of the terms of these pyramid schemes would be immediately horrified that any individual would believe they can earn any legitimate and sustainable income from such a scheme, especially with a clear conscience. Not only do they have to continually obtain recruits for an alarmingly over priced product, in most cases that is never clearly defined, the product is the opportunity and the opportunity is the product.
The con is so elaborate with the accessibility of the Internet that as soon as an individual pops up on a forum to warn others of the dangers of signing up to said MLM or "Network Marketing" program, staff/employees/owners of the said programmes are quick to join the particular forum, and post a neutral critique, they do not want to make it blatant that they are singing the praises of said MLM pyramid (however many do) just to give an opinion that is neutral enough, that the ignorant neophyte may think this is a legitimate income earning opportunity, which is their entire purpose, to continue getting ignorant individuals to fund their pyramid schemes.

There are a number of ways of detecting whatever latest network marketing fad is a MLM pyramid.

For example:
i) Is there no clearly defined product?
ii) Is the product the opportunity and vice-versa?
iii) Is the sole requirement of the recruit to sell a highly priced item that is never described or elaborated to other recruits?
iv) Are recruits only guaranteed the high amounts of income promised by meeting certain quotas for recruits?
v) Is the so-called product able to stand alone on it's own merit without the financial incentive?

Labels: Email scams, mlm, network Marketing

Many individuals using the internet are savvy enough to know that pyramid schemes and MLM(Multi-level Matrix) schemes are illegal and stand no chance of making any revenue apart from finding other victims who have to find other victims to satisfy the system, it doesn't take much to realise that the supply will never sustain the demand if all goes according to plan for the pyramid scheme or MLM(Multi-level Matrix) scheme, more victims have to be found until the pyramid scheme collapses, the only people making any money from this are those at the top of the pyramid, and the instigators of this scam, who are usually one and the same.


Internet fraudsters, con artists, and snake-oil salesmen are coming up with new and ingenuous ways of stealing peoples' money, and tricking them into their pyramid schemes.
One such so called business opportunity going the rounds of being advertised is the standard "Make $1000 - $2000 a day working for 1-2 hours a day from home".
As the old adage goes, if it sounds too good to be true it usually isn't.
It usually starts off by claiming this is not a pyramid scheme, or an MLM(Multi-level matrix) scheme when infact this is precisely what it is.
On investigating this so called business opportunity, it is usually found out that the:

i) The business is the opportunity.

That should send alarm bells ringing, as there is no viable product or service being offered, just the incentive of a referral payment of approximately 80% of the revenue generated per sale for getting "a victim" to fork out over $2000. Much is made about the so called training and one-to-one mentorship being given, but these are just covers to increase the downline of the potential victim who has to trick other victims to buy into the system to recoup his/her money.

Knowing fully well that pyramid schemes are illegal in most parts of the world, the scammers attempt to circumvent these by producing a cd-rom or dvd of their material to appease the legal aspect that at least their victims were supplied with "something", which also passes as the study material/one-on-one mentorship.

The victim now has to find other potential victims to practice the con on, realising they have been duped at an extortionate $2000, they may go as far as to create a website and use the material suggested from their "one-on-one mentorship" with a devious ad copy making no mention that there is no product or legitimate service, just an all out attempt to get a premium signup, usually by promising a lavish lifestyle with little or no work, the signature of most get rich quick scams.

Simple clues to indicate that this is a pyramid scheme is the lack of a product or the clarity of definition of any product or service whatsoever, as usual joining the so called service is the entire purpose of the scam, the business opportunity and phantom product are one and the same and are incorporated in having to signup for the only type of membership on offer, that of a premium membership. When the scammer emphasizes that there are no stocks to sell, or no cold calling, rather than pique a potential investor's interest these should instantly raise red flags, instead of justifying a product or a suitable legal service, attempts are made to allay potential investors fears by showing how much they could make from the commission based structure, as with any scam, dangling the carrot infront of the donkey will pay dividends especially if the victim is ignorant and desperate.

Labels: credit card fraud, Email scams, fraudulent jobs, internet scam, internet scams, job scams, Magneticsponsoringonline, Mike Dillard, mlm, online fraud, phishing, pyramid scheme, pyramid schemes, scams