Cash Gifting Scams

People love to give and receive gifts. It's seen as an ideal way to celebrate special occasions. However, there are some situations where giving gifts could get you into trouble. Cash gifting is a term given to businesses which don't actually make any products or offer any real services. You may know these as pyramid schemes or Ponzi schemes.

These all work in pretty much the same way and will offer you the ability to change your life. They are simply get rich quick schemes. As you should already know, it's impossible to get rich without doing anything.

How Do Cash Gifting Scams Work?

Cash gifting scams normally target vulnerable people who are looking to start their own business. These scams are even more common at the moment because of the financial hardship most people are experiencing.

With more people losing their jobs they are starting to look at alternative ways to make money. One of these methods is to start their own business.

The bait is normally the ability to make huge sums of money by doing nothing or very little. These, however, only work because you will be selling the exact same get rich quick scheme to other people. There is no product; you just sell the instructions to other people.

Is Cash Gifting Illegal?

Many of these pyramid schemes claim that they are legitimate by suggesting that they abide with IRS tax codes and postal regulations. However, these are always a con and they are always illegal.

Ever since the first Ponzi scheme they have been illegal because they eventually collapse. There are no assets to the business and eventually the pyramid will cave in leaving a lot of people out of pocket. Sometimes it can work if you are an early member, however they are not only illegal but also immoral.

Spam Messages

Cash gifting uses spam email messages to try and encourage you to join their schemes. They often include proof of their earnings with paypal screenshots but these really don't mean anything. You really don't want to get mixed up with a pyramid scheme.

Scammers are becoming more inventive every day and dreaming up all sorts of ways to trick us out of our hard earned money. These new scams are very believable and this poses a whole new problem. We all need to keep our wits about us especially when dealing with the internet. Identity theft is very easy in the modern world of the internet.

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Identity theft comes in many forms.

A person\92s identity can be 'borrowed' for the purpose of creating fictional credit cards or a person\92s entire identity can be usurped to the point where they can have difficulty proving that they really are who they claim to be.

Up to 18% of identity theft victims take as long as four years to realize that their identity has been stolen.

There are many ways to protect your personal identity and many steps you can take to prevent your identity from being stolen:

*Never give out unnecessary personal information
*Never provide bank details or social security numbers over the Internet
*Always remain aware of who is standing behind you when you type in your personal credit codes at ATM machines and at supermarket checkout swipe machines.