What are BULK MAIL PONZI SCHEMES (multi-level marketing schemes) and how to avoid them?

In Bulk Mail Ponzi Schemes, group of fraudster make money by getting other people to sign up into a business scheme. Further,the signed up group of people would be responsible to make money by getting more people to sign up, and chain continuous. This phenomenon is also known as “Multi-level Marketing schemes”.

How the Ponzi Scheme works?

Target receives unsolicited bulk spam email to join a very rewarding and attractive bulk email enterprise. Usually target would be enticed to enroll in this program because it offers the opportunity to make very large sums of money in less time and with the little investment.

Most Ponzi schemes will require you to pay a registration fee first and then you would be given the opportunity to sign up as many individuals as you can in your down line to sell them the same information and mass email system. The costs/fee is so reasonable and incentives are so impressive,one thinks it’s a good investment.

The target is shown that this system operates in more than 100 countries and that the potential is huge. There will be few, if any, details on the program or less client experiences. Any system that depends on an exponential process of signing up other people but offers “No actual product” or which has the product described in vague terms such as these bulk email scheme offers is almost certainly a scam operation.

Schemes collapse when it becomes difficult to attract new investors/members and inflow of money stops or when a large number of investors ask their money back.

How to protect yourself from this kind of scam

  • To be aware of legitimate and unsolicited Emails and stay away from these types of offers
  • Do not share your Personal details like Aadhaar card number, Whatsapp Details, Bank Account details and Online Banking details etc.
  • Research more about the service provider/ the sender of the Email. Also verify:
    • DKIM signature to check the domain name details, it would be present if domain name is legitimate or would be hidden when not genuine.
    • Check SPF records to know sender’s details like authenticated name or IP address
  • Do not download any attachments.
  • Do not click on the link.
  • Do not engage in the scheme even if it is free of cost.

Reactive Measures- What to do if you are a victim of E-mail Fraud?

  • Place a fraud alert to the concerned authority (police/cyber cell) in written, giving details of the complete fraud scheme, i.e., date & time of the first Email received, Email ID, names of the persons (if any), phone numbers and company name etc.
  • Preserve the Emails properly to maintain the authenticity of the Emails.
  • Inform your concerned bank if you have been defrauded of money.

Leave a Comment