Gifting ScamsWhen Giving Goes BadThere is something particularly alluring about gifting scams. Perhaps more than any other type of get-rich-quick scheme out there, illegal gifting appeals to our sense of charity and goodwill, which is what makes these scams all the more disturbing. Unfortunately, for as charitable as these scams sound, they are illegal. If you haven't heard of organized gifting schemes, you're probably wondering what they're all about. Well... What Is A Gifting System (Scam)?These programs go by different names: Gifting Programs, Gifting Groups, Organized Gifting Circles, Gifting Networks, and so on. Despite naming variations, they have a lot in common. Gifting schemes run along the lines of, you guessed it, giving gifts (usually cash). People involved with organized gifting donate, or gift, money to other members of the group. For their participation in the system, they will receive a gift of greater value in return. That is the gifting system in a nutshell. Each group will, of course, have its distinct characteristics, but the they all function similarly. For the basic ways in which cash flows through these systems, check out
How Illegal Gifting Programs Work.
Why Are Gifting Systems Illegal?If for no other reason, gifting schemes are illegal for being pyramid or ponzi schemes. These styles of systems make fraudulent offers on potential earnings and have the potential of hurting large numbers of consumers and even banks. As shown by this pyramid scheme example, this model will always be doomed to collapse. Without an infinite number of potential new recruits to draw upon, which there isn't, people in the bottom levels of the program (pyramid) will not be able recoup their initial investments. When the scheme finally collapses, the recruit pool exhausted, only the top of the pyramid walks away with a profit. The people at the bottom, the VAST MAJORITY, failed to break even or even begin recouping investment costs. Scams of these sorts are incredibly harmful to consumers, which is why there are laws put in place against illegal gifting scams. You're better off
avoiding these scams at all costs.
What To Do If You're A VictimIf you've been hurt by illegal gifting, or have been approached by summon recruiting for a gifting scam, report it. Contact your state attorney general and notify the BBB. The FTC also takes complaints. Internet Crime Complaint Center (IC3) is another government division setup to battle cyber crime. Web-based gift scams might be worth registering there as well. Return from Gifting Scams to WAH-Scams-Avoidance
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