The mobile phone matrix scam has fast become one of

the largest growing scams on the internet at the

moment and is abundant on many of the internet auction

sites, these mobile phone scams offer mobiles for as

little as ?20. This sounds very enticing and people

readily sign up, however the majority of the members

never actually see the promised goods.

How do they work?

The definition given by trading standards (of a matrix

scheme) in their report into current scams sums it up

very nicely :

Consumers who buy the product become members of a

waiting list to receive their chosen ?free gift?. The

matrix works by sending the person at the top of the

list their ?free gift? only after a prescribed number

of new recruits has signed up ? the prescribed number

varies according to the choice of ?free gift? but can

be as great as 100. Once the ?free gift? has been

sent, the remaining members each move up one place on

the waiting list.

The person who has moved to the top then has to wait

until the prescribed number of new recruits has signed

up again in order to receive their ?free gift?.

Although it is not compulsory for members to sign up

new recruits, they are encouraged to do so in order to

move themselves up the waiting list faster. This has

led to some members placing misleading adverts on

internet auction sites offering the ?opportunity to

buy a mobile phone for ?20 , in order to seek new

recruits.

So basically the early members are paid out only when

sufficient new members have joined under them, the

maths behind this are absolutely staggering. I have

used a simple example of a scheme that operates on a

ten tier matrix with an entry price of ?20 and a

gadget price of ?150.

Member #1 pays: they are, ?the member to get the

mobile phone ?

Member #2 pays: Scammers Fund is ?40.

Member #3 pays: Scammers Fund is ?60.

Member #4 pays: Scammers Fund is ?80.

Member #5 pays: Scammers Fund is ?100.

Member #6 pays: Scammers Fund is ?120.

Member #7 pays: Scammers Fund is ?140.

Member #8 pays: Scammers Fund is ?160.

Member #9 pays: Scammers Fund is ?180.

Member #10 pays: Scammers Fund is ?200.

Once the member count reaches 10 member #1 ?cycles?

and receives their gift, so the mobile phone matrix

website makes ?50 (?200 scammers fund - ?150 cost of

gadget). Member #2 then moves into prime position and

the process starts over again. When member #2

?cycles?, the website will make another ?50 and

another 10 members will have had to have joined.

Using that example, the figures seem quite good,

however the majority of these mobile phone scam sites

offer mobiles worth ?300-?600 and as such they need to

increase the tiers (or the entry price) so as to cover

thier costs and make money. If they operated a 100

tier scheme then the 100th member would need another

1000 to have joined before they see their gadget! Some

sites have been found to be operating 1000 or 10000

tier systems!

Here today, gone tomorrow!

The mobile phone matrix scheme, like all pyramid

selling schemes, eventually gets to a point where it

is unable to attract sufficient numbers of new

members. It then collapses and those still waiting for

their gadget are left holding the can as they cannot

move forward without new members. What tends to happen

now is that the people held in the tiers of the matrix

try to promote the scheme further through the use of

websites, forums and the auction sites and this

further compounds the problem and just lines the

scammers pockets further.

Remember, these mobile phone matrix sites only make

their main money in the beginning as people join, once

this starts to dry up the scammers move onto other

things leaving the lists to collapse. Also it is key

to remember that most of these scammers never actually

send the goods even if you get to ?cycle? and the

majority of names and claims made by the sites are all

fake.

Final thoughts

Please remember that these mobile phone matrix schemes

are ILLEGAL, if you see one on a site or an auction

site then please report it to trading standards (for

singular websites) and also report it to the auction

sites (most have rules regarding these sites).

The simple way not to get taken for a ride is not to

get involved in the mobile phone matrix's in the first

place.

I will sum it up in one statement when dealing with

mobile phone matrix schemes :

? If the deal sounds to good to be true, THEN IT IS?