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 matrixs 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
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