jokach
February 11th, 2005, 04:30 PM
"Cheap Ipod and phones scams"
Reposted from:
http://www.spamfo.co.uk/component/option,com_content/task,view/id,257/Itemid,2/
This article specifically points curious readers to MatrixWatch.
Contributed by Andy Streule
Wednesday, 02 February 2005
You may have noticed in the last 6 months or so and increasing number of adverts/emails/forum msgs notifying of cheap I-pods or Mobile Phones
A particular target of these messages has been ebay with sellers auctioning internet links to websites managing these schemes. I was particularly incensed after seeing one on Amazon marketplace.
As with most things apparently too good to be true, common sense should dictate that there's something wrong with getting a £200 Ipod for £20. What some informants tend to neglect to tell you is that actually you get a free ipod for £20 + the time taken to convice x otherpeople to part with £20 for the same reason. The £20 may be taken in the form of purchasing an item from a website(nb: not an ipod). You get the real I-pod after a given number of people have signed up after you. Some websites do indeed explain the nature of the scheme however they hardly make it clear that doing nothing will in all probability not give you an Ipod.
This scheme is called a "multi level marketing scheme" , "matrix scheme" or "elevator scheme" and is a type of "Pyramid Scheme". All such endevours require convincing people to sign up after you have done in order for them to fund your (potential) prize. The trouble is the more people in the scheme the more people that need to join for any person to get their reward. Pyramid schemes are actually illegal and constitute fraud as they are classed as obtaining money/prizes through deception. Pyramid schemes have winners and loosers. The winners are those near the top (the few). The loosers (the many) are those who nearer the bottom who are trying to recruit further members in a saturated market or don't even realise they have to do any recruiting.
Some of the more legitimate MLM sites seem to be engaged in at the least dubious arrangements with 3rd party retailers. To get a free ipod at http:/www.freeipods.com/ in you and 5 friends have to sign up for trials with 3rd party companies. Getting 5 people who'll stick at their free trials is probably difficult.
Such advertising for members is an insideous form of spam. Let's face it, to convice 100 random people to sign up, perhaps as many as 10,000 or 100,000 people need to see a message. That's going to equate to a lot of forum posts /ebay auctions etc. In fact this sort of auction is such a problem on ebay now that it looks completely legitimate. Most of which say things like "DO NOT PAY FOR THIS- DONT CLICK BUY NOW- I GIVE INFORMATIONS FOR FREE" and give the address of a website.
Paypal now include in their terms and conditions:
"You may not use PayPal to send or receive payments for any form of multi-level marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, "get rich quick" scheme, or other similar ventures."
https://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame&ed=rich_quick
The Uk Office of Fair Trading (OFT) recently included Matrix Schemes in
a list of top ten scams as part of "Scams Awareness Month".
http://www.oft.gov.uk/News/Press+releases/2005/18-05.htm
Clearly knowledge of these scams is filtering down but more should be done
by the retailers whose services are being abused.
For more information see
How matrix schemes work
http://www.matrixwatch.org/modules.php?name=FAQ&myfaq=yes&id_cat=6&s=
The ebay matrix scam
http://www.matrixwatch.org/modules.php?name=FAQ&myfaq=yes&id_cat=5&s=
Pyramid Schemes, Ponzi Schemes, and Related Frauds
http://members.impulse.net/~thebob/Pyramid.html
As you cant ell, this one is from another UK source.
jokach
Reposted from:
http://www.spamfo.co.uk/component/option,com_content/task,view/id,257/Itemid,2/
This article specifically points curious readers to MatrixWatch.
Contributed by Andy Streule
Wednesday, 02 February 2005
You may have noticed in the last 6 months or so and increasing number of adverts/emails/forum msgs notifying of cheap I-pods or Mobile Phones
A particular target of these messages has been ebay with sellers auctioning internet links to websites managing these schemes. I was particularly incensed after seeing one on Amazon marketplace.
As with most things apparently too good to be true, common sense should dictate that there's something wrong with getting a £200 Ipod for £20. What some informants tend to neglect to tell you is that actually you get a free ipod for £20 + the time taken to convice x otherpeople to part with £20 for the same reason. The £20 may be taken in the form of purchasing an item from a website(nb: not an ipod). You get the real I-pod after a given number of people have signed up after you. Some websites do indeed explain the nature of the scheme however they hardly make it clear that doing nothing will in all probability not give you an Ipod.
This scheme is called a "multi level marketing scheme" , "matrix scheme" or "elevator scheme" and is a type of "Pyramid Scheme". All such endevours require convincing people to sign up after you have done in order for them to fund your (potential) prize. The trouble is the more people in the scheme the more people that need to join for any person to get their reward. Pyramid schemes are actually illegal and constitute fraud as they are classed as obtaining money/prizes through deception. Pyramid schemes have winners and loosers. The winners are those near the top (the few). The loosers (the many) are those who nearer the bottom who are trying to recruit further members in a saturated market or don't even realise they have to do any recruiting.
Some of the more legitimate MLM sites seem to be engaged in at the least dubious arrangements with 3rd party retailers. To get a free ipod at http:/www.freeipods.com/ in you and 5 friends have to sign up for trials with 3rd party companies. Getting 5 people who'll stick at their free trials is probably difficult.
Such advertising for members is an insideous form of spam. Let's face it, to convice 100 random people to sign up, perhaps as many as 10,000 or 100,000 people need to see a message. That's going to equate to a lot of forum posts /ebay auctions etc. In fact this sort of auction is such a problem on ebay now that it looks completely legitimate. Most of which say things like "DO NOT PAY FOR THIS- DONT CLICK BUY NOW- I GIVE INFORMATIONS FOR FREE" and give the address of a website.
Paypal now include in their terms and conditions:
"You may not use PayPal to send or receive payments for any form of multi-level marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, "get rich quick" scheme, or other similar ventures."
https://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame&ed=rich_quick
The Uk Office of Fair Trading (OFT) recently included Matrix Schemes in
a list of top ten scams as part of "Scams Awareness Month".
http://www.oft.gov.uk/News/Press+releases/2005/18-05.htm
Clearly knowledge of these scams is filtering down but more should be done
by the retailers whose services are being abused.
For more information see
How matrix schemes work
http://www.matrixwatch.org/modules.php?name=FAQ&myfaq=yes&id_cat=6&s=
The ebay matrix scam
http://www.matrixwatch.org/modules.php?name=FAQ&myfaq=yes&id_cat=5&s=
Pyramid Schemes, Ponzi Schemes, and Related Frauds
http://members.impulse.net/~thebob/Pyramid.html
As you cant ell, this one is from another UK source.
jokach