Frequently Asked Questions (FAQ)
Q: I received an E-mail telling me that my E-mail address was picked at random, and I had won a $2 Million dollar first prize. All I have to do is contact the Fiduciary Agent to claim my winnings. Is this real?
A: No. These lotteries do not exist. If you didn’t buy a ticket to participate in a Lottery, you have not won. If you did not purchase a ticket to enter your E-mail in a lottery, you have not won the lottery.
Q: I received an E-mail from a person dying and needed my help in distributing a large sum of money for charitable works. They could not trust their family members, and that is why they were contacting me for help. By my helping them, I would receive a most generous percentage of the funds for my time and effort in helping a dying person’s last wishes. Is this real?
A: No. Just like the non-existent E-mail lottery, there is no money. They do, however, want you to send them money to cover the costs of paying the courier, or some such nonsense, for you to receive the funds. Of course there are always unexpected fees that magically come up once you start paying. They get richer, you get poorer.
Q: I received an E-mail from a company that needs a transfer agent for their business. I am to handle payments for their company that will come to me, and I am to withhold 10% and forward the balance on to them. I can work at home, I can work part-time, and it seems to be easy money. Why shouldn’t I apply?
A: No such company or person really exists. They are both fictitious. They are either using you for money laundering, for an advance check fraud scam, or both. You are being setup to be the fall guy when charges are filed, and charges will be filed as the checks you receive to process will all be fraudulent. Since the company does not exist, nor the person representing themselves as the owner; the only person left to bring charges against is you.
Q: I had a friend contact me about this incredible online investment program that he has joined. He wants me to join too. The returns he says they are paying are more than double, sometimes more, what I currently make on my investments. I am really tempted to join. Do you think this is a good risk, or am I missing something?
A: Of course on the surface this all sounds great. Usually your friend will provide you much more information than provided above, but this information must also be backed up in writing. I don’t mean some website that is promoting the investment, but is sent to you outlining the investment and all the risks involved. It makes no difference if the investment is online, offshore, or wherever; you must be provided a prospectus. If they say they must stay below the radar of government authorities, run as fast as you can from this “investment”. It is sad to say but all of these type of programs are scams.
Q: What steps should you follow if you’re the victim of identity theft?
A: Check your credit report. Close credit cards and accounts that have been affected. File a police report if you are a victim. File a complaint with the Federal Trade Commission to help prove you were a victim of identity theft. Place a fraud alert or security freeze on your credit file. Report unauthorized charges to the credit issuer. Keep detailed records of all your phone conversations and copies of all documents and letters.
Q: How can I tell if a MLM (Multilevel Marketing) program my friend joined, and now wants me to join, is legitimate or not?
A: The simplest answer is from which source do you make the most money? Is it from recruiting others in your down-line or from selling the products? If the majority of your income is from recruiting others into the business, than from selling product, then it is an illegal pyramid scheme. For any MLM to be legitimate, the majority of income must come from the sale of the company’s products, not signing up people under you.
Q: You have said that HYIP programs are 100% fraud found on the Internet today. Why is that?
A: When you invest in HYIP (High Yield Investment Programs), the return on your investment is high, but so is the risk. They higher the returns, the higher the risk; you cannot have one without the other. The HYIP’s that are being promoted on the Internet all claim high returns, but at a very minimal risk. To invest in a true HYI (High Yield Investment) you must qualify as an investor. Each trading house has different requirements as to what is a qualified investor, but the general rules of investing are the same. These are: You have to be able to show you have the disposable funds (meaning not needed to pay the mortgage, car payment, utility bills, i.e.: living expenses) to invest; If you lose the money you invested it will not cause financial harm to your standard of living (filing BK, paying utilities, etc.); and you sign an application in which you acknowledge your understanding of the investments, as well as the risks you are taking by investing in these type of investments. You will also receive a prospectus outlining the various types of trading that will be done in the HYI portfolio. Only the HYI investments listed in the prospectus can be purchased and traded in the program. You will also receive quarterly statements of your account activity. The only two requirements to invest in a HYIP on the Internet are 1. You are breathing, and 2. You have money to invest. We have found that all of the HYIP’s being promoted on the Internet are Ponzi’s.
Q: What about FOREX, is it legitimate? What is FOREX?
A: Let’s answer what is FOREX first. FOREX is a term coined to mean commodities (mostly currencies) traded on the Foreign Exchange markets. So what about FOREX and is it legitimate? FOREX, in and of itself, is legitimate. Just like HYI (High Yield Investment), you must qualify as a qualified investor. As in the HYI the means test of being a qualified investor applies, but one more requirement is added to the process. You must have a specified dollar amount of net-worth and income level before you qualify. They will also provide you a prospectus and quarterly statements of your account activity. There are excellent FOREX trading programs available today.
The difference is those being offered on the Internet in the HYIP arena, do not provide a prospectus, “qualify” you as an investor, tout high return/low risk, and do not clearly state which commodities they will be investing in or how they trade (which is part of what a prospectus does). In trading in commodities you need to understand inter-day trading, intra-day trading, stop/loss, limit up/limit down, straddles, and a whole lot of other trading terms. When you use a broker, he/she will explain all these terms to you and how they determine your profits/loss. We have found that about all of the online HYIP programs claiming to do FOREX trading, do not meet these requirements and are Ponzi’s.
Q: What about “Gifting Clubs”? Are they legal?
A: In almost every jurisdiction, and in almost every country “gifting clubs,” or whatever you want to call them, are illegal. Many use the term ‘2-UP’ to avoid being labeled a “gifting” program, but they are still a “gifting” program. Many of these 2-Up programs were started in Australia, even though illegal there, and promoted via the Internet into almost every country. The Internet is full of “cash gifting clubs” from many countries. Stay away from these, as cash gifting is illegal no matter what they say. You could be exposing yourself to criminal charges.
Q: Are there any programs on the Internet that are not scams?
A: The sad truth is less than 1% of the programs being promoted on the Internet today are not scams. Not all, for there are some out there, but we have found that 99.9% are scams; and 100% of the HYIP programs are Ponzi’s. The old adage, “If it is too good to be true it is”applies. Think about this for a moment. If any one of these programs could really do what they claim they can do, none of the other programs would be necessary.