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
Tags: Bad Business, scams by Contributor
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