Before to start reading, I just want to remark you that well organized scam, made by companies with a real marketing-scam plan, with certificates, fiscal addresses and telephone numbers are very difficult to recognize. These companies are able to get the affiliate trust and stay up and running for months before to definitely scam. Sometimes, there are sign that could help investors understand the scam, but we will discuss about this later.
Now let’s focus on scam “dedicated” to newbies. The kind of scam that everybody faced at least once in his/her investor life especially in the beginning of his HYIP experience. First of all you need to understand how well organized scams work.
Well organized scam
Some very resourceful guy registers 20 domains. On 10 domains he load a monitor script, maybe a free version, then on the other 10 domains, installs copycat HYIP sites, just changing some images, some text, etc. With outstanding offers that claim to bring the investor something like 444% in one our, 1200% in one day, or just a daily 60% with minimum deposit of $100. These false HYIP, also claim to have thousand of investors registered and $ billion invested. They result paying on dozen of monitors, that by chance are all owned by the same individual.
The newbie comes to the web-scam-site, reads about so attractive interest rates, he checks the rating (on fake monitors), and thinks, “well for $10 I can try, it’s the 1200% per day!” now the scam is done. You’ll never see that $10 back in your pocket. You’ve just been scammed. We must also warn you that this kind of sites, continue survive and scam dozen of users, thanks to complicity of monitors and forums, that earn money displaying their banners.
The scam is so evident that experienced investors do not spend time posting threads on forums warning newbies, and nobody posts these scam sites on serious monitors, so at the end you cannot find any negative comments. You’ll just find positive comments on fake monitors. This way, the scammers can continue their activity without problems, basically because their activity is focused on to newbies.
Low lifetime expectation programs
Another binding scam-marketing plan, consists in creating an accurate Ponzi scheme. Nice graphics, advertisement campaign, with an absolutely no sustainable interest plan, like 27% for 4 days, 22% for 5 days. These schemes are principal included and percentages are impossible also for a Ponzi scheme.
How can they build a business with a capital decreasing just after the first day, and also pay interests? Come on, it’s a joke! How can they pay 22% daily with capital decreasing day by day?
Usually these programs collapse after 15-30 days. Simply because their schema is unsustainable. Their lifetime is strictly connected to the time needed to get back the principal+interests. Just to be clear: 27% schemas in 4 days will long last less time than 10% in 12 days schemas.
To survive, Ponzi games need some time for capital to grow, while new funds come in. The more this time is extended, the more the schema can survive. In conclusion, higher interests in very short time are for project with and extreme short life. Usually it’s quite impossible to get out of these schemas without loose money.
Alarm signs
Avoiding to become paranoid, just keep an eye on when programs make something important to catch investors attention, like special very remunerative programs, world conferences, email claiming to have other sites cloning their investment programs, a transformation in a private club and whathever action made to inflate trust in investors and by consequence lowering their caution. Forget about trust and just think on numbers, never, never, double your investments when you see these signs.
When an investment program starts acting like this is ready to explode and let all investors with pants down, and most important with an empty wallet. So, try to get the more funds back is mandatory and wait at least 30-60 days to see what happens.
Courtesy: http://www.riskygains.com/the-evident-hyip-scam.html
By cerealkiller at 26 August, 2009, 11:44 am
Now let’s focus on scam “dedicated” to newbies. The kind of scam that everybody faced at least once in his/her investor life especially in the beginning of his HYIP experience. First of all you need to understand how well organized scams work.
Well organized scam
Some very resourceful guy registers 20 domains. On 10 domains he load a monitor script, maybe a free version, then on the other 10 domains, installs copycat HYIP sites, just changing some images, some text, etc. With outstanding offers that claim to bring the investor something like 444% in one our, 1200% in one day, or just a daily 60% with minimum deposit of $100. These false HYIP, also claim to have thousand of investors registered and $ billion invested. They result paying on dozen of monitors, that by chance are all owned by the same individual.
The newbie comes to the web-scam-site, reads about so attractive interest rates, he checks the rating (on fake monitors), and thinks, “well for $10 I can try, it’s the 1200% per day!” now the scam is done. You’ll never see that $10 back in your pocket. You’ve just been scammed. We must also warn you that this kind of sites, continue survive and scam dozen of users, thanks to complicity of monitors and forums, that earn money displaying their banners.
The scam is so evident that experienced investors do not spend time posting threads on forums warning newbies, and nobody posts these scam sites on serious monitors, so at the end you cannot find any negative comments. You’ll just find positive comments on fake monitors. This way, the scammers can continue their activity without problems, basically because their activity is focused on to newbies.
Low lifetime expectation programs
Another binding scam-marketing plan, consists in creating an accurate Ponzi scheme. Nice graphics, advertisement campaign, with an absolutely no sustainable interest plan, like 27% for 4 days, 22% for 5 days. These schemes are principal included and percentages are impossible also for a Ponzi scheme.
How can they build a business with a capital decreasing just after the first day, and also pay interests? Come on, it’s a joke! How can they pay 22% daily with capital decreasing day by day?
Usually these programs collapse after 15-30 days. Simply because their schema is unsustainable. Their lifetime is strictly connected to the time needed to get back the principal+interests. Just to be clear: 27% schemas in 4 days will long last less time than 10% in 12 days schemas.
To survive, Ponzi games need some time for capital to grow, while new funds come in. The more this time is extended, the more the schema can survive. In conclusion, higher interests in very short time are for project with and extreme short life. Usually it’s quite impossible to get out of these schemas without loose money.
Alarm signs
Avoiding to become paranoid, just keep an eye on when programs make something important to catch investors attention, like special very remunerative programs, world conferences, email claiming to have other sites cloning their investment programs, a transformation in a private club and whathever action made to inflate trust in investors and by consequence lowering their caution. Forget about trust and just think on numbers, never, never, double your investments when you see these signs.
When an investment program starts acting like this is ready to explode and let all investors with pants down, and most important with an empty wallet. So, try to get the more funds back is mandatory and wait at least 30-60 days to see what happens.
Courtesy: http://www.riskygains.com/the-evident-hyip-scam.html
By cerealkiller at 26 August, 2009, 11:44 am
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