Swisscash & Other Scams: Why some `Investors` are still making money today?

Swisscash is a scam. There is no doubt about it.

To put it more correctly, it is a HYIP (High Yield Investment Program) or a Ponzi scheme.

How to tell a if a program is a scam or not?

Very Simple.

A genuine business will normally give no more than 15% return in a year to its investors. This is a number agreed by many experts. 15% is already considered above than average.

That means a little over 1% a month.

However scams like HYIP give as much as 1% return everyday!! That is 365% a year!!

So Swisscash is a scam right?

Wait a minute!

One of my friends who “invested” a moderate amount of money in Swisscash in 2005 still earn RM300-500 a month now!

He even logged in his Swisscash account and showed me his earnings (as of Jan 2007).

This really puzzled me!

Swisscash is a scam and some of the people involved (money launderers) have been arrested in Malaysia.

However, as of today, my friend is still making money from it.
(When he “invested” in swisscash 15 months ago, it was fairly new in Malaysia.)

Then I spent a few days searching online why confirmed scams like swisscash still work even till today. Then I contacted him again if there is really a HYIP that I can "invest" to become rich quickly.

It became clear to me.

The reason Swisscash and other scam is still alive is because the sheer number of new people getting online nowadays. There are always new visitors from countries as far as Mongolia & Uzbekistan that just discovered Internet today. And they will be the newer investors who will fall prey to this age-old scam.

However, because of the online nature of this scam, it is just a matter of time before another company devise a newer scam with higher return and attract money from the existing "Investors". As the newer HYIP scams rise, the older scams getting flat, before gradually collapse.

Back to my friend. First he told me to invest in another HYIP which give a better offer than Swisscash (it is called eBarrel). He admitted Swisscash is not as good as it was a few years ago.

A few weeks later he contacted me again and tell me to invest in another HYIP which is, in turn, better than eBarrel. He also admit that he is getting less from eBarrel as his downlines (or network of members) are more interested in a newer HYIP scheme which pays daily at higher rate.

Can we guess what is next?

In a few months time, he will contact me again suggesting yet another HYIP to invest.

The gist of this story,
Stay away from anything that pays high return. As a general rule of thumb, if a company pays more than 15% return annually, it is most likely a HYIP Scam.

Read more : http://www.mfa.org.my/business-articles/v.php?swisscash-other-scams-why-some-investors-are-still-making-money-today:blog-magazine;1213-070619a