Well, it happened to me again. Joined a program that appeared to have the makings of a good one, and it appears has turned into a scam. I’m referring to Paramount Profits. I did have their banners up on my blog earlier this week, but I quickly pulled them once it was apparent that this one turned into a quick scam. I was only in there for $20, but still, any loss is not a good thing. Though in these types of programs you must accept a certain level of risk, which I have since the start. So, how can I learn from this? What did I know from the start that made me think it would be one to last for a decent amount of time?
- professional design running a secure Gotenks script (well known programmer)
- dedicated server hosted by BlackLotus
- good selection of pay processors – including SolidTrustPay & StrictPay
- admin was an active longtime member of MMG forum
- sustainable ROI – 2% daily forever + a variable rate plan
Everything looked like he had his ducks in a row and was going to make a go at running a HYIP based on his supposed ForEx trading. Now, I usually take anything with reference to ForEx with a grain of salt though you can make money with it if you know what you are doing. Hey, if the rate of return is decent then I really don’t care how you generate the funds! Things were moving along nicely and I put in for my first cashout about 5-6 days back. The terms indicated payments could take up to 72 hours, so no problems there, until I started seeing some red flags popping up, like the guy vanished from the forums and stopped paying out to LibertyReserve, because they are very lax in regards to investigating fraud. You are pretty much on your own if something goes south that you paid with LR. All the monitors he had on his website that were honest were removed, leaving only the ones paid off to maintain his “paying” status, so the unsuspecting new investor would not know there were problems. He also dropped the links to all the forums where threads were started to further lay a smokescreen down for those considering the website.
Payments to STP and Strictpay became selective and continued as I wrote this. This was probably to allow him more time to get the money out of those accounts, as if no members that used those processors complained, they were not likely to freeze his accounts, so he could continue to move the investor’s funds out. From the standpoint of a scammer, it was a very well executed one at that. Being only online for about a week, the amount of member’s money deposited would not have been too large to steal, as he only had to worry about STP and Strictpay freezing his accounts. In my opinion he was just out for making a quick buck at the expense of his following. Probably collected enough to cover the expenses of the script and web design, the hosting and any advertising that was purchased with the monitors and forums as well as a good chunk for himself.
This just goes to show that even with doing your homework on a program, you can still lose, and when the red flags appear, really it is already too late, because you are into it too deep to get out without taking a loss. That’s why I cannot stress enough about playing with money you can afford to lose, because you will at some point. Luckily my loss was not a great one. Some other members went in with hundreds of dollars or more. In these tough economic times more people are turning to these types of programs to generate an income, and unfortunately some will get themselves into more trouble than they bargained for at the expense of crooked admins.
So a word to the wise…avoid this one like the plague!
And so my quest continues…dust off and move on 
I’m with you Pete! I thought this was going to be a great one and I lost over $200 bucks. My fault, I broke one of my personal rules (don’t invest more than $200 at the beginning of a program) and now I remember why I made that rule! I’m also starting to think that the “trusted forum member” can be a red flag sometimes too as some of those “trusted members” have used that trust to scam.
Hi Susan. Sorry about the loss there. I agree that a long time forum member doesn’t mean much anymore. All it takes is a couple of people to be overcome with greed and ruin it for the rest of us. I think now if you find out they are a veteran forum dweller it’s a good call to turn on your heels and run the other way…lol.
Thanks for the comment!
Pete
I figure if I lose as much as $100 on 10 programs to find a good one that pays me $1,000 a month for even a while, I hit the jackpot, especially when I use free money. Keep trying my friend.
That is a good way to look at it Warren. I have accepted the fact that not all of these will produce, kind of compare it to the cost of doing business. It’s just when you get the occasional one that catches you off guard, it can sting a bit!
I must say I enjoy your contributions online. I was in your WF3D downline originally.
Thanks for your comment!
I agree Warren. We’ve all done it more than once, I know I have. I think finding the right opportunities is just as much educational as learning the overall business itself. All the garbage I’ve purchased over the years has just taught me what does NOT work. May be just as important.
Hey Pete,
Well written my friend. I never heard of this one. New to me. Sorry you lost money on it. I too have lost money
on some HYIP’s (CashTanker.com) was my latest train wreck. I only lost about $40 but like you mentioned “any loss is not a good thing”. I am new to investing but one of the first rules I learned was to never invest more that you can afford to risk or lose. But I know that some of these scam programs out there are VERY well written and Very convincing. It can sometimes be tricky to wade through the junk to find the Gems.
Hi Ken,
Well you win some, you lose some. Comes with the territory. I also took a small hit with CashTanker.
Funny that the name of the program wasn`t a clue to steer clear from the start…lol
I know there are some gems out there like you said – that;s what keeps me motivated some times – trying to find them.
Thanks for the comment!
Pete
I made a little money with Cash Tanker. Got in early and got my principal out. I think what Warren said is right on and I am focusing on that right now…getting into 10 or more programs that look promising and slowly growing the ones that survive. I also throw some money towards things like the Prosperity Game for some variety (thanks Pete)!
That’s a great strategy Susan. Diversify and get your seed money out as soon as you can. And you can’t go wrong with the Prosperity Game
Wow, I didn’t know you could say things like that. I’ll have to write bad stuff on my blog. I’ve been ripped off by SOOO many companies…
Unfortunately there are more scams than good ones in this online realm. When you do find a good one, you really need to hang onto it!