MLM and Ponzi Scams

The most common MLM scams are in fact Pyramid Schemes that exist in various forms. In the most crude form, the scheme does not offer any value other than the promises of wealth by simply asking others to contribute to the pool and hence creating a huge base.

Basically someone in the “upline” will approach you asking for a small sum of money to join the scheme. After doing so, all you need to do is the same, asking others to join by paying the money. The money gets to passed upwards, each upline making a little from it. If you have just joined the scheme, you will start off at the base and your risk is the highest.

Such a scheme that do not offer any value other than the pyramid system (i.e. passing money upwards) is not sustainable and is proven to fail, as in the case of the Ponzi system in the early 1990s.

Pyramid Systems may exist in different names, e.g. Matrix Schemes, Ponzi System, Chain Letters, etc. Although not the first of its kind, Charles Ponzi (picture below) was the one who made the scheme famous in the United States due to the large amount of money involved.

What isn’t important is what people may call them, because only the most stupid scammers would call their system a Pyramid, Ponzi, Matrix, HYIP or Chain Letter, or they would attract the attention of the authorities. Moreover, do not be enticed by the complicated “paperworks” involved. There are many ways to make the system look legal.

So far, we have known a few systems that offer value products and legal, e.g. Amway. (caveat emptor)

Matrix Scams on eBay

A search for "iPod" on eBay yields a couple thousand listings for the digital music player and accessories, but beware: Hundreds of the listings are inducements to join pyramid-style scams.Ebay is swamped with new "matrix" schemes, which ap

Webhosting Companies

In recent years, the cost of webhosting has been dropping rather quickly due to the ease of market entry. The availability of OTS(off-the-shelf) webhosting control panel that simplifies the tasks of creating webhosting accounts on the popular Linu

Of Ponzi and Pyramid Systems

There are many definitions on the internet regarding the various "get rich  quick" networking schemes. It can be confusing, and so it is worth the effort to define them clearly so that we know what is legal and what is not.If you would like to k

The Hamburger Trick

japan hamburger trick

Fake “Coca-Cola” Lottery Scam 178,226 GBP Winnings

Fake "Coca-Cola" Lottery Scam 178,226 GBP Winnings

Fake “Pepsi” ?500,000.00 Winning

Attached below is the email on the fake Pepsi, scam. As we can see from the mail header, the mail originates from free email address at hotmail, and using Yahoo! email for subsequent dealings.The u/m names may also coincide with real ppl not involved

US$12 Million of Iraqi Money in Chiang Rai, Thailand

The story goes that the wife of an "ex-Iraqi official" who is in charge of military payout is now in Thailand with US$12 million in her account. As she is dying soon, she is seeking a "Hero" like you to help invest the money and take care of her c

US$33 million Nigeria Scam Biggest Payout! Quick! Quick!

By far, this scamming offers is the best in my collection with a returns in shares of 40% of the US$33 million dollars... (wow! peed in my pants!). Not to worry, the scammer has prepared all the fake legal documents awaiting for you to be scammed.

Cheap OEM Softwares?

We are getting these spam mails almost everyday, selling expensive so -called OEM softwares at a great discounted price. This business of piracy has basically 3 groups (in definition). Type 1, they are geniune OEM Softwares seller but

US$6.1million South African Scam

This is a brave attempt to imitate government officials' names in a scam... the hot christmas turkey must have gone into their head and clogged those vessels.----------Return-path: []Delivery-date: Sat, 02 Dec 2006 00:

1.8million GBP Lottery Prize for Christmas!

As we had mentioned in the news, Christmas is just around the corner and scammers are working very hard 24/7 generating spam + scam emails to make some quick cash for their hot turkey and ham this Christmas. Beware of losing your turkey and ham to

China Business Scams

The following is an example of a probable scenario on doing business in China (in the past).  Something like this probably happened.Employee walks in to the office of the CEO, forgetting to knock due to all the excitement.Employee:  &n

US$20 million from Lucas of Zimbabwe

What about the US$20 million? You will be getting 20% of that if you help Mr Lucas with his problem. That is US$4 million, much better than eating worms and running through obstacles in Survivor Series... ------------------Return-path: [lucasfamily

Internet Explorer 7.0 Scam

Several of our 1,323,472 email addresses (setup just to perform spam+scam email mining) received an email from a scammer to download the latest Microsoft Internet Explorer 7.0. The link goes to a site something like We still have

US$24.5million Bonjour Cash

Return-path: []Delivery-date: Sun, 03 Dec 2006 09:40:54 -0700Received: from [] ( from ([]) by with Microsoft SMTP

Pyramids and MLM Scams?

pyramid,mlm,chain letter,scams,scam,ponzi,matrix

Operaen – Domain Buying Scam

In the recent months, there have been several reports of domain name scam from someone called "Jon Hegglund". In summary, they will ask you for the domain price and thereafter ask the domain name to be appraised by a domain name appraisal service

Tips for Preventing Domain Name Scams

Tips for Preventing Domain Name Scams

Another Big Red Coca Cola Award – Free Mercedes Benz

HANG ON!! We think that this is a scam (we seldom make mistakes), but it is your choice. Should you like to try them out, WE ARE NOT LIABLE FOR ANY OF YOUR LOSSES OR DAMAGES WHATSOEVER, INCLUDING MONEY, HOUSE, CARS, AND YOUR HAIR!----------

Who is the Scammer?

I have been peering once a while to the google ads on my site, taking care not to click them accidentally. Then I saw this advertisement headings:"I was scammed 37 times", and a link to with a brief story about Dann

Yahoo! introduces sign-in seals

Yahoo! has introduced a new seal technology using personalized sign-in seals.Once a User signs-up to use this protection, he will be able to see his seal whenever he is signing into Yahoo! The purpose is help the User identify that the website he is

PayPal – Your Account Will be Suspended !?

There appears to be some some interesting stuffs in the email headers, for FBI, police etc etc whoever this may concern.The email links in the screen capture goes to the following site:

2CO Fraud Check Complaint

Found this announcement in one of the forums regarding 2CO fraud checks. As we can see, the task of the "gatekeeper" is not easy, having to screen off good orders from frauds among the thousands of transaction per day. Any errors in the process would

Puppy Scams

puppy scam report

US$ 20.5million Iraqi-related Money Transfer

This is a nice submission with offer from "Jim Frank", credit officer of the Frist commercial bank (whatever this is).I have the habit of skipping the story about who dies and how the money come about. In these days of overwhelming information

419 Scam: Fake Ecobank

This 419 scam uses fake Ecobank name. If you landed on this page... bingo, if you received something like below, it is a scam mail. All Caps, that is a rude, scammer. Woah, its $950k, I am going to pee in my pants... lol -----AFTER THE OFFICIAL...

419 Scam: Stupid World Bank Scammer

419 Scam: Stupid World Bank Scammer

500k GBP Yahoo and MSN Lottery

The following is the full email with headers:---------------------Return-path: []Delivery-date: Fri, 10 Nov 2006Received: from ([]) by with Microsoft SMTPSVC(6.0.3790.1830);&nbs



3 Easy Steps To Hire A Good Private Investigator

Instead of going through the tedious investigative work, wasting your precious time and energy, you realized that you need help for looking up a long lost relative or perhaps you need to check out an employee or a tenant. All you need is a good relia

419 Scam: From the Desk of Bernanke

This is a joke! The scammers are using Bernanke's name in the scam! From The Desk of: Mr.Ben S. Bernanke Chairman,Federal Reserve System.Urgent Attention:To whom it may concern,re:contract fund credit from federal reservesystem We received the paymen

419 Scam: Who on earth is MOTHER JANE COLE HAMMARSKJOLD?


419 Scam: Another Iraq-related scam – Fake Sgt Robert Donald search and reports the hottest scam, news, videos and reports on the internet - lottery scam, inheritance scam, pet scam, lover scam, phishing scam, commercial scam, job scam and more scams

419 Scam: Natwest Bank search and reports the hottest scam, news, videos and reports on the internet - lottery scam, inheritance scam, pet scam, lover scam, phishing scam, commercial scam, job scam and more scams

419 Scams: David Lumka Offers US$14.6million

419 Scam: David Lumka Offers US$14.6million

419 Scam: Fake FBI Anti-Terrorist And Monitory Crime Division

419 Scam: Fake FBI Anti-Terrorist And Monitory Crime Division

419 Scam: Swift Card Payment

419 Scam: Swift Card Payment

7 Reasons for Failing as a New Affiliate Marketer

When beginning marketing on the internet we are led to believe that promoting affiliate products is a quick and easy start in establishing a foothold in the very competitive internet marketing business. Our mailboxes get flooded with promises of imme
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