Dont Get Caught Out by the Mobile Phone Matrix Scams

By: Mike Ralph

Please read the article and leave a comment with your thoughtsor experiences.

The mobile phone matrix scam has fast become one of the largestgrowing scams on the internet at the moment and is abundant onmany of the internet auction sites, these mobile phone scamsoffer mobiles for as little as £20. This sounds very enticingand people readily sign up, however the majority of the membersnever 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 listto receive their chosen 'free gift'. The matrix works by sendingthe person at the top of the list their 'free gift' only after aprescribed number of new recruits has signed up - the prescribednumber varies according to the choice of 'free gift' but can beas great as 100. Once the 'free gift' has been sent, theremaining members each move up one place on the waiting list.The person who has moved to the top then has to wait until theprescribed number of new recruits has signed up again in orderto receive their 'free gift'. Although it is not compulsory formembers to sign up new recruits, they are encouraged to do so inorder to move themselves up the waiting list faster. This hasled to some members placing misleading adverts on internetauction sites offering the 'opportunity to buy a mobile phonefor £20′, in order to seek new recruits.

So basically the early members are paid out only when sufficientnew members have joined under them, the maths behind this areabsolutely staggering. I have used a simple example of a schemethat operates on a ten tier matrix with an entry price of £20and 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 receivestheir gift, so the mobile phone matrix website makes £50 (£200scammers fund - £150 cost of gadget). Member #2 then moves intoprime position and the process starts over again. When member #2'cycles', the website will make another £50 and another 10members will have had to have joined.

Using that example, the figures seem quite good, however themajority of these mobile phone scam sites offer mobiles worth£300-£600 and as such they need to increase the tiers (or theentry price) so as to cover thier costs and make money. If theyoperated a 100 tier scheme then the 100th member would needanother 1000 to have joined before they see their gadget! Somesites have been found to be operating 1000 or 10000 tier systems!

Here today, gone tomorrow!

The mobile phone matrix scheme, like all pyramid sellingschemes, eventually gets to a point where it is unable toattract sufficient numbers of new members. It then collapses andthose still waiting for their gadget are left holding the can asthey cannot move forward without new members. What tends tohappen now is that the people held in the tiers of the matrixtry to promote the scheme further through the use of websites,forums and the auction sites and this further compounds theproblem and just lines the scammers pockets further.

Remember, these mobile phone matrix sites only make their mainmoney in the beginning as people join, once this starts to dryup the scammers move onto other things leaving the lists tocollapse. Also it is key to remember that most of these scammersnever actually send the goods even if you get to 'cycle' and themajority of names and claims made by the sites are all fake.

Final thoughts

Please remember that these mobile phone matrix schemes areILLEGAL, if you see one on a site or an auction site then pleasereport it to trading standards (for singular websites) and alsoreport it to the auction sites (most have rules regarding thesesites).

The simple way not to get taken for a ride is not to getinvolved in the mobile phone matrix's in the first place.

I will sum it up in one statement when dealing with mobile phonematrix schemes :

If the deal sounds to good to be true, THEN IT IS

Top Searches on
Cell Phones
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Cell Phones