Gullible suburban mother of four regularly duped in her half-century life. Exploring hoaxes and schemes as the ExSCAMiner, she attempts answering the nagging question: Should I have fallen for that? Got scam tips, email Karin at ScamExaminer@gmail.com.

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Multi-level marketing line of defense

2 comments

July 16, 1:09 PM

by Karin Malchow, Scam Examiner

www.sec.gov

Multi-level marketing is a difficult scam topic since many versions exist, some skirting legality's fringe. Also, those involved will fervently defend them.

At best, the business design of earning commission from both your product sales and the sales of those you recruit benefits a very small percentage of ambitious super-salesmen, primarily those beginning early with the company.

In the middle range, buyers who regularly purchase a specialized product receive a discount after a small buy-in, not losing much without actively recruiting or selling.

At worst, an MLM is a pyramid scheme, where offering a negligible product disguises that income mainly depends on fees from new recruits, making profits an exponential impossibility for late-comers.

Because of MLM risks, scrutiny is essential. Apparently, an internet MLM company, ShopToEarn, disagrees. Their attorney recently sent cease-and-desist letters to several bloggers questioning the company.

Here is a link to forensic accountant Tracy Coenen's analysis of the internet shopping rebate company; an article which initiated legal threats.

The Scam Examiner's opinion: Any company attempting to shut down investigation is worthy of suspicion.

For more info: The FTC provides guidelines for analyzing MLMs.

Topics: suspicion , Multi-level marketing , pyramid scheme

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Comments

Hurricane damage continues with recovery fraud

1 comment

October 9, 7:19 AM

Pre-Hurricane Gustav and Ike, scammers opened their usual bag of tricks: sending phishing e-mails to area residents under the guise of confirming bank information and setting up fake relief charity websites. Post-hurricane, the scammer deluge... Read More
Topics: fraud , FBI

He did what?!? Presidential campaign smears

4 comments

October 6, 9:32 PM

Whether presidential campaign smears come from pamphlets, letters, chants, television advertising, telephone push polls, internet rumors, campaign officials or supporters, people keep falling for them. According to rumors or accusations, which presidential... Read More
Topics: politics

Male enhancement matters to scammers

1 comment

October 4, 4:26 PM

MSN Health reported a preliminary Italian study suggesting an ancient Chinese herbal aphrodisiac could be a natural alternative to Viagra and other pharmaceuticals treating Erectile Dysfunction. Spamming internet scammers are likely to latch onto... Read More
Topics: E-mail

Best (also worst) inheritance scam

1 comment

October 1, 2:10 PM

Tales of estates snarled by bureaucracy still flood e-mail inboxes; a share of the vast fortune only requires immediate cash to either cheated heirs or estate locators for money transfer fees or bribes. The internet version of the inheritance scam... Read More

Does your city rank on reporting fraud?

Add a Comment

September 30, 12:12 AM

The Federal Trade Commission maintains a Consumer Sentinel database collecting complaints from 125 organizations, including the Better Business Bureau, the Internet Crime Complaint Center and the US Postal Inspection Service. The individual consumer... Read More
Topics: fraud , Identity Theft , FTC

Life after death

2 comments

September 26, 11:48 AM

A recap of insurance fraud items in the September 2008 news:Dead men don't go to the doctor.When Ahmad Akhtary's British ex-wife attempted to claim £300,000 insurance after reporting his death in Afghanistan, a couple items tripped up the scheme. ... Read More
Topics: fraud

Famous people confess badly kept secrets

3 comments

September 24, 3:36 PM

AP/People In honor of Clay Aiken's sexual orientation confirmation and Lindsay Lohan-Samantha Ronson dating relationship acknowledgement, here are some other not-so-startling celebrity revelations. Whether those in the public eye... Read More
Topics: suspicion

Keeping your head during economic strife

Add a Comment

September 21, 9:13 PM

Whether one believes the U.S. economy is a house of cards or undergoing a cyclical correction, a Ponzi scheme facsimile or fundamentally sound, a dose of Frank Capra is always fun. According to an MSN-Zogby poll, most people are taking recent economic... Read More
Topics: movies

Moving company pirates hold stuff hostage

1 comment

September 19, 9:33 PM

Unscrupulous moving companies and drivers are hijacking people's belongings and demanding ransom. The scam goes like this:After entering into a contract with a moving company for interstate relocation, possessions are loaded into a truck. ... Read More
Topics: fraud