Monday, December 29, 2008

Ponzi Scheme and internet fraud

I recently had a nice chat with a person living in my community who tried to sell me a service.

Ponzi scheme derived from the the pyramid scheme (like current Madoff scheme, who siphoned of $50 billion in the USA) where investors are promised a fixed or a variable return based on bringing in more investors (MLM). This works well when the market is down, like now or uncertain economic situation like the 1927 market crash in USA.

So in effect, gullible investors flock to invest with a small token amount. Now the risk is theirs to make more money. They get hold of some good faces, to pose off as the ones who made money using this scheme. They get a cut, if they bring in more investors. Sounds so simple! But the reality is, whomsoever signsup first, makes the getaway with a bigger payout. Earlier the better.

Obviously the homepage of your website, does not have the cost implication and how you go about doing the biz, other than the information of this site being registered at on Dec 17th, 2008, without giving out any contact details (not public). This is a big no no in terms of internet security. Why do I tell this? As a good samaritan, I have delivered closer to 1000+ sites, as a Center Head of a Web 2.0 company. There is also no Versign certificate on the home page, while you go about collecting personal information. This is mandatory for any website collecting credit card information!

In understand that the biz is from (blacklisted by many spam filter servers - so they go on creating new sites paid by their new recruits to sell this biz), which is about setting up websites and unique selling of their MyVideoTalk product of unique Video Emailing on MLM.

  1. Nowhere, they talk about the bandwidth requirement or make people understand that the same thing can be done with a simple webcam, and a tool to record file, and attach it to the recepient in an email.
  2. or Google Video Chat would give you the video conferencing facility. Even, Yahoo chat would give you the simple video conferencing. MSN video chat is good too!
  3. Does it provide for the online sharing and editing of documents like Webex?
  4. Why would people pay in dollars when they are expected to do biz in India?

Note - Obviously if you put this biz opp in a residency community only forum, dont I have the right to comment on it? Read this sites articles on online fraud....

Good luck for your biz!

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