Illegal Cash Gifting “Clubs”
The other day I was looking through Home Business magazine for new things to check out and saw an advertisement that caught my eye. I have seen the videos on youtube where the guy is opening the envelopes that have been mailed to him and counting out all the money. These are part of a group of home-based business called cash gifting, I use the term home based business with reservations.
Most, if not all, cash gifting programs out there are illegal pyramid schemes. Point blank scams. They favor the guy at the top, and depend on the people joining for him to receive the envelops of money. For the program to stay afloat it requires heavy heavy recruitment of new members, and again, it favors the guy at the top. That’s how pyramid schemes work. I am disappointed in Home Business Magazine for not being a little more restrictive and doing some research on their advertisers. It really knocks down your magazines creditability if your displaying ads the are obvious scams. Here are a few tips from the FTC on how to avoid these things. Illegal activities are monitored by the FTC and FBI so you may also want to consider that before getting involved as well.
If you’re approached about joining a club but you aren’t sure if it’s an illegal gifting club, the Federal Trade Commission reminds you to:
- Consider that a legitimate gift has no strings attached and is not an “investment.”
- Avoid being misled into thinking a gifting club is legitimate because the ads say that members consider their payments a gift and expect nothing in return. This is an attempt to make an illegal transaction look legal.
- Be wary of success stories or testimonials of tremendous payoffs. Very few members of illegal gifting clubs or pyramid schemes ever receive any money.
- Take your time. Don’t buckle under to a high-pressure sales pitch that requires you to join immediately or risk losing out on the opportunity. Remember, solid opportunities - and solid friendships - aren’t formed through nerve-wracking tactics.
To file a complaint if you have been a victim or someone has attempted to make you a victem, call 877-FTC-HELP or visit the website at www.ftc.gov
Nice writing style. I will come back to read more posts from you.
Susan Kishner
“These are part of a group of home-based business called cash gifting, I use the term home based business with reservations.”
The Gifting activity is not a business, if it were, it would be illegal. Each person would have to register themselves as a charity. Therefore it is done in the spirit of giving and receiving.
“Most, if not all, cash gifting programs out there are illegal pyramid schemes. “
If you are talking about the 2×2 and 2×3 matrix style plans I 100% agree with you but if your referring to the 1Up style plans let me tell you there is no guy at the top.
Each person gives a gift and then breaks away from the person that introduces, so there can be no pyramid structure. If you had studied the 1Up system forming an opinion based on a vague understanding is just soap boxing.
“Point blank scams. They favor the guy at the top, and depend on the people joining for him to receive the envelops of money.”
Once again, If you had studied the 1Up system you would realise there is no guy at the top that’s why there called 1Up plans. Forming an opinion based on a vague understanding is just soap boxing.
When an offer is advertised in Home Business Magazine I assume the person is promoting it as business. Why advertise a charity in a business magazine right? I’m not sure about the 1up system you speak of but I have to wonder why someone would pay money to someone to be branched off on his or her own. Why would I not just keep my money I would send that guy and start my own line? If I were giving just for the spirit of giving then I would give my money to a church or other charitable organization. Giving my money to some random stranger in hopes of making tons of money in return is not the spirit of giving and receiving. I can see some of these cash gifting programs working great for SOME of the people involved as they prey on people who are lazy and looking for a lot of money with little effort. I don’t publish this web site to ”soap box” as you call it. This is to give people a place to find information on opportunities they come across as well as a place for people involved in the opportunities to post their view as well. Thank you for your contribution as this helps build the data base that people come to for answers.
Thanks Susan, Your welcome back any time!
I have done researched on this program and found that the 1up program is not a pyramid scheme. And people are truly making money.
Why is it when society gets together to benefit themselfs to make serious money, people always say it is a scam or to good to be true. And yet stars and sports entertainers can make millions from people who don’t have money, and its alright. I say to people who are haters to lighten up and join the party.
It may be very true that a system works great but it doesnt automaticly make it legal (and I’m not calling it illegal either). The drug trade in America makes people a lot of money to but its not right nor legal. I agree that entertainers and sports people are overpaid. However the source of the money comes from valid sources such as product endorsements and other contracts. They dont just flat out ask you to send them money from your checking account. Also note that participation in any of these programs doesnt mean your gonna get money. People have to be willing to give it to you.