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Different Types of Making Money Online Scams

December 20th, 2009

types-online-scams.jpgThe Internet has been growing rapidly since it was first opened up for access and use by the general public. It did not take long for commercial entities to begin establishing themselves and for individuals to begin using the Internet as a business portal and an opportunity to make money online. But we know that the more such opportunities have developed, the methods for scamming unsuspecting customers have developed as well. We can see that there are many ways to make money online legally, just as there are other ways to scam those who are ignorant, gullible, or impatient and quickly separate them from their money.

If we’re talking about making money online scams, it is good to know that there are several different types of such programs that lure people who have a “get rich quick” mentality into joining but then turn into scams at some point in the future when the programs run out of funds. These are programs that are already proven to make people lose money over and over again, by simply launching their fake services and running away with the customers’ money. Here are three of the most popular programs that have been used by Internet scammers in recent years and are now beginning to decline in popularity.

1. High Yield Investment Programs

Also called HYIPs, they are one of the most common get-rich-quick schemes today. An early form of HYIP originated in 1920 when Charles Ponzi invented the Ponzi scheme by fooling investors into thinking that they could make substantial profits through the trade of international postal reply coupons. Today, modern Ponzi schemers use the Internet for setting up similar versions of the program and duping investors into believing that their money is generating substantial returns through the sale of advertising or from trading foreign currencies. Although it is possible for early investors to make money, for most people it is more like a gambling game, which relies on luck of completing the maturity of your investment within a certain period of time and withdrawing the funds before the program closes.

2. Autosurf Programs

From a financial point of view, autosurf programs are run on a model that is virtually identical to HYIPs. However, you are required to surf (that is, view a certain number of other websites) daily for advertising credits. They claim that you are purchasing an advertising package and will give you a percentage return on your investment after you have completed the surfing for each day. But in fact, it is still another innovative Ponzi scheme because the autosurf programs never generate enough funds through advertising sales or other means to enable payment of the large profit margins offered to investors. You still wind up in a gambling game much like HYIPs and must complete the maturity of your investment and withdraw funds before the program inevitably shuts down.

3. Paid To Click Programs

Also known as PTC, they will let you earn small amounts of money (usually a few cents at a time) by means of clicking links to advertisement pages. However, you cannot earn this money legitimately without advertisers who purchase ad packages of banner or text links for the customers to click on and view. The advertisers often have suspicious feelings if they know that the clicks are incentivized and the members are just clicking ads for the money as opposed to a genuine desire to read the advertisements. It makes sense that most advertisers are no longer using PTC programs, which makes the members frustrated when there are very few ads available, causing most paid-to-click programs to decline or stagnate. The administrators of some PTC programs can also pose problems if they have a propensity for dishonesty; often they will delay payments in an unreasonable fashion and eventually close down their programs without ever paying the members their promised earnings.

These are some of the proven program types that have scammed many people worldwide. You must be careful to only join these programs at your own risk. It’s better not to trust these programs, although not all of them are outright scams. You should only invest what you can afford to lose, because in the end you cannot rely on these types of “investments” as a reliable source of income.

This article on different types of online scams was sent to us from the DigitalPoint forum user “bogartkick” and has been significantly modified to correct certain factual and grammatical errors, and to include additional information based on the publisher’s experience with this particular topic.

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