mercinary
April 9th, 2006, 01:56 PM
Courtesy:
http://www.suncommercial.com/articles/2006/04/09/columns/benjamin/benjamin.txt
Last week, I used YMMSS, now known as STA, as an example of an Internet scam. In the last few days, they have made all kinds of changes in their organization. Not because of my article I’m sure, but because organizations such as Matrix Watch, www.matrixwatch.com, and Scamwatch, www.scamwatch.gov.au, have been showing how these scams work for years.
The Internet is the perfect media for scam artists because it reaches so many people with very little effort. Anyone can put a Web site online for practically nothing. Most ISPs allow you Web site space on their servers when you sign up for Internet service — free of charge. You can register your own domain name for under $7 a year and hosting is about $4 per month. So for less than $60 a year, you can have your own Web site. I use www.godaddy.com for my Web site.
Where else can you reach millions of people for this kind of an investment? The problem is the Internet is just as open to con artists as it is to legitimate business people. It’s up to the individual to determine one from the other. Here are some things to watch out for in a business:
Is it too good to be true? This alone would have kept me from joining YMMSS. I mean, double my money indefinitely and all I need to do is read advertising for 30 minutes a day? Too good to be true definitely applies here.
What are they selling in the business? Is it something that you would buy? If not, why would anyone else buy it? Can you buy it locally just as easily?
How does the business make money? Is it from product sales? Or from other people joining the business? Ponzi schemes make money as new people buy into the business. Without these new people, the money dries up. This is what happened to YMMSS. Outside money streams were practically nonexistent. YMMSS claims to have paid out over $100 million dollars. Where did it come from?
Where is the business located? Is it registered in the United States? This in itself doesn’t mean much, but it is interesting when the business starts here and suddenly moves off shore. This should run up a red flag immediately.
What do you have to do to make money in the business? Does it sound reasonable, or does it sound like a scam? Is it too easy? Again, common sense comes into play.
How open is the business? I mean, is everything they do proprietary information? Do they constantly make excuses for problems that never seem to get fixed?
Do they use testimonials from affiliates saying how they used credit cards to buy into the business so they could make even more money?
These are a few of the warning signs to watch out for if you’re thinking about joining any Internet business.
There are all kinds of scams on the Internet. Chain letters, pyramid schemes, foreign lotteries, $500 an hour using your computer, and of course, make millions by helping a fallen dictator’s wife claim his hidden money. They all sound so real when you first read about them, but they are all rip-offs.
People have lost their homes, retirement funds, maxed out credit cards, and eventually alienated friends and family falling for these Internet scams. I know of one person who quit his job because he thought YMMSS was going to provide him his retirement. Beware, if it sounds too good to be true it’s probably a scam.
-Merc
http://www.suncommercial.com/articles/2006/04/09/columns/benjamin/benjamin.txt
Last week, I used YMMSS, now known as STA, as an example of an Internet scam. In the last few days, they have made all kinds of changes in their organization. Not because of my article I’m sure, but because organizations such as Matrix Watch, www.matrixwatch.com, and Scamwatch, www.scamwatch.gov.au, have been showing how these scams work for years.
The Internet is the perfect media for scam artists because it reaches so many people with very little effort. Anyone can put a Web site online for practically nothing. Most ISPs allow you Web site space on their servers when you sign up for Internet service — free of charge. You can register your own domain name for under $7 a year and hosting is about $4 per month. So for less than $60 a year, you can have your own Web site. I use www.godaddy.com for my Web site.
Where else can you reach millions of people for this kind of an investment? The problem is the Internet is just as open to con artists as it is to legitimate business people. It’s up to the individual to determine one from the other. Here are some things to watch out for in a business:
Is it too good to be true? This alone would have kept me from joining YMMSS. I mean, double my money indefinitely and all I need to do is read advertising for 30 minutes a day? Too good to be true definitely applies here.
What are they selling in the business? Is it something that you would buy? If not, why would anyone else buy it? Can you buy it locally just as easily?
How does the business make money? Is it from product sales? Or from other people joining the business? Ponzi schemes make money as new people buy into the business. Without these new people, the money dries up. This is what happened to YMMSS. Outside money streams were practically nonexistent. YMMSS claims to have paid out over $100 million dollars. Where did it come from?
Where is the business located? Is it registered in the United States? This in itself doesn’t mean much, but it is interesting when the business starts here and suddenly moves off shore. This should run up a red flag immediately.
What do you have to do to make money in the business? Does it sound reasonable, or does it sound like a scam? Is it too easy? Again, common sense comes into play.
How open is the business? I mean, is everything they do proprietary information? Do they constantly make excuses for problems that never seem to get fixed?
Do they use testimonials from affiliates saying how they used credit cards to buy into the business so they could make even more money?
These are a few of the warning signs to watch out for if you’re thinking about joining any Internet business.
There are all kinds of scams on the Internet. Chain letters, pyramid schemes, foreign lotteries, $500 an hour using your computer, and of course, make millions by helping a fallen dictator’s wife claim his hidden money. They all sound so real when you first read about them, but they are all rip-offs.
People have lost their homes, retirement funds, maxed out credit cards, and eventually alienated friends and family falling for these Internet scams. I know of one person who quit his job because he thought YMMSS was going to provide him his retirement. Beware, if it sounds too good to be true it’s probably a scam.
-Merc