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FIB - Scams 101 - Ye Olde Archives

The classic "gifting club" scam

Posted By: Mel. White
Saturday, 7 January 2006, at 5:32 p.m.

In Response To: GAMBLING BOARD (JOHN BECKER)

> WHEN THE BOARD WAS FULL.........HE WENT OFF THE BOARD AND THE TWO GUYS
> UNDER HIM EACH WENT TO THE TOP OF THEIR OWN BOARDS BECAUSE THE BOARD WAS
> SPLIT INTO TWO SEPARATE BOARDS. The old top guy was then entered on both
> boards to make even more money but it cost him another $400.

Yup. These guys are usually cronies of the person running the scam. In the usual setup, some of the people "donating" the $200 are actually plants. When others see these men and women running up to place themselves on the board and see that they get money from people who are right there at the meeting, those hoping to make money get excited.

This is a VERY common technique at seminars of all stripes. It changes the number of sales in any seminar; upping the percentage 200-300% by the "eager crowd" effect.

> YOU GET ALL YOUR MONEY BACK BY BRINGING IN TWO OTHER PEOPLE LIKE YOURSELF
> INTO THE GAME AND EACH OF THEM GIVE YOU $200 TO GET THEIR NAMES ON THE
> BOARD UNDER YOU .......SO......TWO GUYS MEANS YOU GET $200 EACH FROM THEM
> AND THAT IS ALL YOU PAID TO GET INTO THE GAME.......NOW YOU GET A FREE
> RIDE TO THE TOP

Well, no. First, you have to be able to pony up $200. Then you have to find people who haven't heard of this scam to come in and pony up the $200 with no information about how long it will take for them to get their money back.

As with any Ponzi, only the top two tiers make any money. No, "splitting" the boards don't actually make more people successful... because the top spots are always given to the originator's cronies.

I think most here are wary of this... at least, I sure hope so.

Messages in This Thread

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You'll find great information in this "Read Only" Archive, but remember..... things change.
Be sure to visit the Current Message Board when you're finished here.

We're very friendly, so don't be shy... just jump right in and post your question.
Scams outnumber legitimate biz ops about a bzillion to one, so it's well worth your time.



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