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Don’t Get Caught Out by the Mobile Phone Matrix Scams
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The cell phone matrix scam has quickly become one of the biggest scams on the internet today and is abundant on many internet auction sites. These cell phone scams offer cell phones for just £20. It looks very attractive and people sign up easily, but the majority of members never see the promised products.
How do they work?
The definition given by the trading standards (of a matrix diagram) in their report on current scams sums it up very well:
Consumers who purchase the product become members of a waiting list to receive the “free gift” of their choice. The matrix works by sending the person at the top of the list their “free gift” only after a prescribed number of new recruits have signed up – the prescribed number varies depending on the “free gift” choice but can go up to to 100 Once the “free gift” has been sent, the remaining members each move up one place on the waiting list. The person who has risen to the top must then wait until the prescribed number of new recruits have re-enrolled to receive their “free gift”. Although it is not mandatory for members to register new recruits, they are encouraged to do so in order to move through the waiting list more quickly. This has led some members to place misleading advertisements on internet auction sites offering the ‘opportunity to buy a mobile phone for £20’, in order to seek new recruits.
So basically first time members only get paid when enough new members have joined, the math behind this is absolutely staggering. I used a simple example of a system that works on a ten level matrix with an entry price of £20 and a gadget price of £150.
Member #1 pays: it is “the member who receives the mobile phone”
Member #2 pays: The crooks fund is £40.
Member #3 pays: The crooks fund is £60.
Member #4 pays: The crooks fund is £80.
Member #5 pays: The crooks fund is £100.
Member #6 pays: The crooks fund is £120.
Member #7 pays: The crooks fund is £140.
Member #8 pays: The crooks fund is £160.
Member #9 pays: The crooks fund is £180.
Member #10 pays: The crooks fund is £200.
Once the number of members reaches 10 “cycles” of member #1 and receives their gift, the cell phone matrix website earns £50 (£200 funds for scammers – £150 gadget cost) . Member no. 2 then moves into a privileged position and the process begins again. When member #2 ‘cycles’ the website will pay an additional £50 and 10 other members will need to have joined.
Using this example the numbers look pretty good, but the majority of these mobile scam sites are offering mobiles worth £300-600 and as such they need to up the tiers (or the entrance fee) to cover their costs and make money. If they were running a 100 level program, the 100th member would need another 1000 members before they saw their gadget! Some sites operate systems with 1,000 or 10,000 levels!
Here today, gone tomorrow!
The mobile phone matrix system, like all pyramid schemes, eventually reaches a point where it is unable to attract a sufficient number of new members. It then collapses and those still waiting for their gadget end up with the box as they cannot move forward without new members. What tends to happen now is that people held in the matrix levels try to further promote the system using websites, forums and auction sites, which further compounds the problem and only fills the pockets of scammers more.
Remember that these cell phone matrix sites only make their main money in the beginning when people join, once that starts to dry up the scammers move on leaving the listings to crumble. It’s also vital to remember that most of these scammers never ship the goods, even if you get to “ride the bike” and the majority of the names and claims made by the sites are all fake.
Remember these mobile phone matrix patterns are ILLEGAL, if you see one on any site or auction site please report it to Trading Standards (for singular websites) and also report it to trading sites. auctions (most have rules regarding these sites).
The easiest way to not get taken for a ride is to not get involved in the mobile phone matrix in the first place.
I will sum it up in one statement when it comes to mobile phone matrix diagrams:
If the deal seems too good to be true, THEN IT IS
Just a small update…
Paypal now indicates in its general conditions:
“You may not use PayPal to send or receive payments for any form of multilevel marketing programs (including online payment randomizers), as well as matrix, pyramid and Ponzi schemes, the “get rich quickly” or other similar companies.”
The UK’s Office of Fair Trading (OFT) recently included Matrix Schemes in a list of the top ten scams as part of “Scams Awareness Month”.
This gives you an indication of the large scale scope of scams, please avoid them all.
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