Six Worldwide Scams You Should Know

Six Worldwide Scams You Should Know

Basically, there are three main methods of scamming:

1. To secure for a victim’s confidence
2. To obtain money from a victim
3. The scammer will disappear with the victim’s money

Below are some common cases of scams happen worldwide. The scam has caused the victims lose much money; some even commit suicide because they are unable to pay back the borrowed money. This article aims at providing you the details of scams so that you can aware of them and help stopping scammer’s activity.

Swiss cash or Swiss Mutual Fund Scam

This is an online quick money scheme. Over 50000 victims around the world joined this program. The victims include lawyers, businessmen, technicians, government servants, workers, housewives and students.

The victims who joined Swiss cash fund are required to pay US30 for registration fee and the minimal investment is US100.

According to the SIP25 scheme, the investors are guaranteed for the fix 300% return for 12 consecutive months of investments. However, the Swiss embassy denied the existence of Swiss cash Fund.

The Swiss Cash Mutual website claimed that it is a $9 billion company but it does not appear in the listing of legitimate business funds. Also, it said that the company is fully licensed by the Government of Dominica, yet its phone and address are not listed by the government of Dominica. Their website is recently being blocked. Never fool or convince by all their schemes.

Nigerian e-mail Scam

Nigerian e-mail scam is also known as “4-1-9” or “419” e-mail scams as in Nigeria they fall under section 419 of the Nigerian criminal code. The scams are closely associated with advance fee fraud.

Even though this type of e-mail scam is commonly sent by Nigerian or African black people but it may even send from country other than Nigeria. The feature of the scams is as follows:

1. You will receive an electronic mail asking you to join certain projects that will benefit both parties
2. The scammer will notify you that the said person has a bulk deposit of US dollars in a foreign bank
3. Due to certain technical problems, the fund is unable to transact directly to the said person’s account
4. The scammer will invite you to assist him and promise that if the transaction is successful, he will give you a share of dollars
5. Before you are qualified for the sum of dollars, you have to pay certain amount of money. He insists that this money is used to employ attorney to subscribe for the tax and endorsement fee. The payment is not for one time as you may be asked to pay more and more money to rescue this transaction.
6. Lastly, you do not receive hundred million of US dollars from the scammer and the money that you had paid cannot be refunded

Pyramid Scheme Scam

The scheme promises you for good earnings if you join as a member and bring in more people to join under you. Later, they will ask you to buy their products before giving you the guaranteed earnings.

Under this scheme, the victim has to pay a small amount of money, let say US50. The person who later joins under you has to pay US50, too; so that you may benefit from him for 1% income. The company promises for large sum of US dollars for those who have reached the top level of the pyramid. In fact, the people in the base layer of pyramid paid for the top layer’s person not the company itself. In this procedure, the company benefits from the persons who joined the scheme by not investing any capitals. But be realistic, the persons who reached the top layer not you and me, they may be the persons from the company. The pyramid scheme does not generate any money to us. The money you earned actually is the cheated money from other newly-joined members.

If a person invites 3 persons as his down line, these three members have to invite 3 persons each for their down lines, summing up to 9 persons. Similarly, these 9 persons have to invite 3 persons each making up to 27 persons. The system goes till you reach the 21st level with members up to 160 hundred millions persons.

From the explanation above, we understand that 96% members lost money but only 4% of the members gaining the wealth. The scheme, does not generate wealth, it only allocates and distributes money paid by other new members to the old members. Actually, each dollar you earned is a one dollar lost of other party.

Black Money Scam

What is black money? It is money turned from a white paper. The scammer claims that you have to buy some unique chemical fluid in order to turn normal papers into US dollars. The scammer will then do some demonstrations to show you how to “wash” the paper into US dollar with a black chemical fluid to secure your confidence.

The scammer will later ask you for certain amount of money so that you can get these specially made chemical and papers. In a case of Malaysia, a victim paid RM66, 000 to obtain US350 hundred millions. The scammer brought him a big luggage with US350 hundred millions for this successful business transaction. But sadly to say, when the victim opened up the luggage, he found another iron safe in the luggage with blank content. He later alerted that this was a scam.

Lottery Scam

The scammer notified you via electronic mail that you had won a lottery. He asked you to give some particulars to claim for the winning. He then mailed you a copy of lottery with your name and address stated in front of the lottery. The lottery is so real that you may get confusing that you had stricken a lottery. After several days, the foreign banks will call you for the retrieval of the fund. They will convince you to pay for tax, endorsement, transport and administrative fees so that the said fund can be transacted to your bank account.

The scam proceeds as they told you that the bank policy had changed and they will assign their “international ambassadors” to deliver the said fund directly to you. Prior to this, they will ask you to pay for the airline fee and his ambassadors’ expenditures for them to deliver a big iron safe stuffed with bulk of US dollars to your house. After giving them some amount of US dollars, they finally send the iron safe to you and warned you not to open as it involved some security problems. They added that you must call the bank to obtain the 4 digit password in order to open up the iron safe.

When you reach home, you call the bank to obtain the password. You are delighted with the iron safe, and intend to open it immediately. When you open up the safe, you can see bulk of US dollars on top of the safe. However, you cannot take out the money, as the money is sealed with a layer of translucent material. A note is attached on top of the material instructing you to call for the technician assistance. The note warned you not to open yourself as they claimed that there is a bomb inside the safe. The scammer convinced you not to be scared as they put the bomb inside so that no one can take your money away. They call you several times asking you to contact the technician immediately so that you can deposit the money the following day. At this stage, the victims will believe on scammers.

When the victim calls the technician, he will be asked to pay certain amount of US dollars to the technician. The victim will be cheated easily by the scammers by giving out their deposits as they think that large sums of US dollars is belong to him and the scam goes on and on. At last, a victim feels disappointed for the iron safe’s content, as his hard-earned money was exchanged for bulk of blank papers and false US dollars.

Paid Survey Scam

They will ask you to pay a one-time registration fee to gain for members’ benefits. Later, you will receive some paid survey company lists. The listed companies ask for your full details. After that, the companies ask you to wait for their survey’s invitation. Day and day, month and month, year by year, you wait patiently for the invitation. You open your e-mail, not even one invitation you found. You began feeling regret as you gain nothing at last. Do not simply provide your particulars online as someone may use it for crime purposes.

Never pay to take any surveys. Some legal company does not ask for any payments to get involved for their survey program. Never be cheated by the advertisement that guarantees you for US200 per day by filling up simple survey questions. Also, some survey company provided links that are out of date or broken links. Housewives, school children or college students should aware of this type of scam.

Warning:

The following are some of the tactics used by scammers.

1. Invest small sum of money is guaranteed to get large sum of money
2. Never response to any strangers who asks you to join for mega projects
3. Must pay some money to join the scheme
4. Their address is not a proper address but a postal box mailing address. Also, the address is not found in an address directory.
5. They do not have registered company contact number. They use mobile phone or toll free phone number. Also, their number cannot be found in a telephone directory as they are not registered.
6. Never deposit money into the stranger’s bank account that you do not know who they are
7. Their product’s retail price is extremely high
8. Their business income is based entirely upon the growth of memberships

The second part of this article: The biggest scams on the internet

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