Different types of Scam and how to spot them.

in cryptocurrency •  7 years ago  (edited)

The Donation Scam

This is pretty clever but quite obvious if you know where to look. Here’s Bitinvestment.ml which is reported to give payments out. BUT….

That’s right, if you invest at the lowest “option, give money now” they don’t pay you anything back and that covers the cost of the other plans (silver and VIP) so they are working on the theory that most people will donate the Hourly plan for the hourly return, what hourly return? Nothing. Tested, nothing at all, Up To means nothing. Often they do have it in the small print or the wording in such a way they tempt you to put your money in.

The We’ll give you back most of your money but no profit scam

This one works by actually paying you out daily, then, miraculously the payments stop leaving you short of even your most basic investment. So to start with you get all excited thinking that you’re getting paid but sadly, it’s a honey pot scam because you’ll never even get back what you invested. Grand Alliance is one of these scams.

The Time Scam

This one is quite interesting, they promise you mega returns but give nothing at all, but they keep you holding on by saying it’s going to be quite a while, they hope that by the time the investment is due that you’ve forgotten about it. (Unfortunately they don’t expect people like me who like spreadsheets to keep track of EXACTLY how much I’m using testing these sites).

The Fake Product Scam

New Age bank is an example of this, they had fake cards you could buy and in fact did pay out for a while but then just disappeared with ever one’s money.

The Ponzi Scheme

This works by building up a network of people and the new investments pay in and that covers the payments to the early investors who make a fortune.

The Pyramid Scheme

This uses Geometric progression of you refer 2 they refer 2 etc, this is not to be confused with Network Marketing where the network is used to retail products – if there are no products its a pyramid

What you need to work out to spot a Scam…

Just ask this question.

HOW DO THEY MAKE THE MONEY TO PAY PEOPLE AND WHY WOULD YOU OFFER THESE RATES?

If you see things like forex trading and stock and shares trading, trust me, if they were successful at this they would make so much money that they would have no interest in taking yours.

Bitcoins give you freedom, don’t let other’s abuse it!

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