Don?t Get Caught Out by the Mobile Phone Matrix Scams

Please read the article and leave a comment with your thoughts or experiences.

The mobile phone matrix scam has fast become one of the largest growing scams on the internet at the moment and is abundant on many of the internet auction sites, these mobile phone scams offer mobiles for as little as ?20. This sounds very enticing and people readily sign up, however the majority of the members never actually see the promised goods.

How do they work?

The definition given by trading standards (of a matrix scheme) in their report into current scams sums it up very nicely :

Consumers who buy the product become members of a waiting list to receive their chosen 'free gift'. The matrix works by sending the person at the top of the list their 'free gift' only after a prescribed number of new recruits has signed up ? the prescribed number varies according to the choice of 'free gift' but can be as great as 100. Once the 'free gift' has been sent, the remaining members each move up one place on the waiting list. The person who has moved to the top then has to wait until the prescribed number of new recruits has signed up again in order to receive their 'free gift'. Although it is not compulsory for members to sign up new recruits, they are encouraged to do so in order to move themselves up the waiting list faster. This has led to some members placing misleading adverts on internet auction sites offering the 'opportunity to buy a mobile phone for ?20′, in order to seek new recruits.

So basically the early members are paid out only when sufficient new members have joined under them, the maths behind this are absolutely staggering. I have used a simple example of a scheme that operates on a ten tier matrix with an entry price of ?20 and a gadget price of ?150.

Member #1 pays: they are, "the member to get the mobile phone "

Member #2 pays: Scammers Fund is ?40.

Member #3 pays: Scammers Fund is ?60.

Member #4 pays: Scammers Fund is ?80.

Member #5 pays: Scammers Fund is ?100.

Member #6 pays: Scammers Fund is ?120.

Member #7 pays: Scammers Fund is ?140.

Member #8 pays: Scammers Fund is ?160.

Member #9 pays: Scammers Fund is ?180.

Member #10 pays: Scammers Fund is ?200.

Once the member count reaches 10 member #1 'cycles' and receives their gift, so the mobile phone matrix website makes ?50 (?200 scammers fund - ?150 cost of gadget). Member #2 then moves into prime position and the process starts over again. When member #2 'cycles', the website will make another ?50 and another 10 members will have had to have joined.

Using that example, the figures seem quite good, however the majority of these mobile phone scam sites offer mobiles worth ?300-?600 and as such they need to increase the tiers (or the entry price) so as to cover thier costs and make money. If they operated a 100 tier scheme then the 100th member would need another 1000 to have joined before they see their gadget! Some sites have been found to be operating 1000 or 10000 tier systems!

Here today, gone tomorrow!

The mobile phone matrix scheme, like all pyramid selling schemes, eventually gets to a point where it is unable to attract sufficient numbers of new members. It then collapses and those still waiting for their gadget are left holding the can as they cannot move forward without new members. What tends to happen now is that the people held in the tiers of the matrix try to promote the scheme further through the use of websites, forums and the auction sites and this further compounds the problem and just lines the scammers pockets further.

Remember, these mobile phone matrix sites only make their main money in the beginning as people join, once this starts to dry up the scammers move onto other things leaving the lists to collapse. Also it is key to remember that most of these scammers never actually send the goods even if you get to 'cycle' and the majority of names and claims made by the sites are all fake.

Final thoughts

Please remember that these mobile phone matrix schemes are ILLEGAL, if you see one on a site or an auction site then please report it to trading standards (for singular websites) and also report it to the auction sites (most have rules regarding these sites).

The simple way not to get taken for a ride is not to get involved in the mobile phone matrix's in the first place.

I will sum it up in one statement when dealing with mobile phone matrix schemes :

If the deal sounds to good to be true, THEN IT IS

Just a little update...

Paypal now state in their terms and conditions:

"You may not use PayPal to send or receive payments for any form of multi-level marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, "get rich quick" scheme, or other similar ventures."

AND

The Uk Office of Fair Trading (OFT) recently included Matrix Schemes in a list of top ten scams as part of "Scams Awareness Month".

This gives you an indication of the scams widescale reach, please please avoid them all.

Article written by Mike webmaster at Must Have Mobile Phones and can be reproduced freely provided that the article is not changed and author details are included.

Online Auction Trader - develop your auctions into an online sustainable income.

---

Customize Your Cell Phone With Ringtones and Wallpaper

As an important part of your daily life, your cell phone should reflect your personality. At one time, the only way to personalize your phone was to get one in your favorite color.... Read More

Negotiating a Cell Tower Lease: Getting Help

A recent survey of the FCC's antenna structure registration database showed that in 2001 there were roughly 89,000 antenna sites registered with the FCC. Today, there are over 109,000 registered sites. It is... Read More

Choosing a Phone and Voice Mail System

Phone and voice mail systems can be pretty costly, even for companies with a low number of users. Before investing in any type of phone system or voice mail system, you need to... Read More

Do Cellular Phones Pose Health Risks?

You hear it in the media on a slow news day. Do cellular phones pose health risks? The available scientific reports do not show that any health problems are associated with the use... Read More

How to Find the Best Long Distance Rates

These days the best long distance rates are not found with your home carrier. There's too much competition in the marketplace and many people are discovering that a prepaid card can actually save... Read More

Can You Anticipate The Cell Phones Of The Future?

We have become a society that demands the most technologically advanced equipment, and cell phones are no exception. That's why the cellular telephone industry is changing so rapidly. Today's phones are quite impressive... Read More

Making Sense of Cellular Phone Minutes

Cellular phones are different from your land-line home phone in that you'll need to determine in advance how many minutes you'll use in any given month. Deciding how many minutes you'll need and... Read More

Motorola RAZR V3 Camera Phone

Months before my current cell phone plan expires, I like to begin diligently researching my options by checking out all the plans and models out there. The Motorola RAZR V3 Camera Phone has... Read More

Buying A Cell Phone ? Making Smart Choices

Whether you're buying your first cell phone, upgrading to a newer one or contemplating a new cell phone plan, it's a good idea to thoroughly research your purchase. There are a multitude of... Read More

Protect Your One and Only Brain From Cell Phone Radiation

Cell Phones have become a part and parcel of everybody's life. They are no more the nifty gadget that a selected few carried around. They are carried around like the life depends on... Read More

Prepaid Cellular Phone

Reasons why someone would purchase a prepaid cellular phone.Prepaid cellular phone is an alternative to a monthly cellular phone plan. Prepaid cellular phone services are currently being offered by AT&T, Cricket, Verizon, and... Read More

Cell Phone Cameras

A lot of myths exist regarding as to whether the cell phone cameras are any good or not. The fact that people require to admit that these cameras are also digital cameras and... Read More

Calling Cards and Prepaid Phone Cards To Help You Save Money

You can now save quite a bit of money on your long distance calling simply by using prepaid phone cards. It wasn't too many years ago that making a call overseas or even... Read More

The Benefits of Digital

Analogue is the process of taking an audio or video signal and then turning it into electronic pulses. Digital is the process of turning the signal into a binary format, represented by a... Read More

Call Mexico at Rates as Amazing as the Murals

It's a country that speaks through its numerous murals and is vibrantly creative and colorful in their representation of the ancient Mayan and Teotihuac?n history. It's little wonder that tourism is a booming... Read More

What Are Smart Phones And Do You Need One?

Smart phones are a combination of a cell phone and PDA functions all in one device and are much bigger and notably more expensive than regular handsets, generally costing in the neighborhood of... Read More

Cell Phone in Forests

We are putting cell phone towers in the forests for safety, tourists and Forest Service Workers. Sounds like a good idea alright. They will also help when fighting fires, as they add a... Read More

Prepaid Calling Cards and Terrorism: Where Did All The ?Chatter? Go?

Does that necessarily mean that there are no terrorist communications happening, or does it simply mean that terrorists have found other effective ways to get their twisted plots across continents? The advent of... Read More

Prepaid Wireless: Is It Right For You?

Just about every leading mobile phone provider now offers some sort of prepaid calling plan in order to fit their customers' budgets. But is is right for you?The first question you'll need to... Read More

Cell Phone Reviews ? Why Do Them?

Well let's be honest some people just don't bother doing cell phone reviews, and why should they? Well let's keep things simple, would you just walk into a car showroom and drive away... Read More

Prevent Phone Monitoring with Digital Spread Spectrum

If you are using an analog cordless or cellular telephone, someone is listening to your conversations!You'll notice I did not say someone might be listening to your telephone conversations, or there is a... Read More

Telephone Tips, Techniques and Etiquette

Whether using the telephone for business or personal use, using this communication tool effectively means being timely, communicating clearly and having the other person's interest in mind.1 ? Plan and schedule your telephone... Read More

Why Your Business Should Consider SMS

As an organisation, the use of SMS might seem too innovative or unprofessional.So why are "forward-thinking" organisations throughout the world welcoming SMS open-heartedly. What's so good about SMS?SMS is popular and well-establishedTo begin... Read More

Prepaid Phone Cards Will Save You Money On All Your Long Distance Calls

If you make a lot of long distance phone calls, you may find that you can save money by doing what many people are doing: taking advantage of prepaid phone cards. Prepaid phone... Read More

Why Mobile SMS/Text Messaging?

What is Mobile SMS/ Test Messaging?Mobile text Messaging, or Short Message Service (SMS), as we all know it, is the ability to send and receive text messages to and from mobile telephones. The... Read More

Internet Cell Phone Deals - How to Take Advantage of Them

The internet can be a great place to buy your next cell phone. How many times have you been in the mall and were harassed by some pushy wireless telephone dealer? The internet... Read More

Cell Phone Safety

Cell phone safety is a topic widely debated around the world. Millions of dollars is being spent ever year to find out the dangers in using cell phones "if any" The research is... Read More

How to Find the Best Cellular Phone Service Deal

Finding the best cellular phone service deal can seem as frustrating and difficult as shopping for a new car. Nothing can be as vexing as trying to set up a new service plan... Read More

Mobile Phone Unlocking

In the world today, you will but a phone, and it will be locked to one single network. This is because the network providers lock the phones to only accept their SIM cards,... Read More