Recently i heard about this scam known as multilevel marketing. What happens
is that a person registers and pays around 60 $.He is told that if he brings
two people into the network then he will get 30$.If they(the first two
people he brought to the network) bring two people to the network then he
will also get 30$.This goes on and on.
Wikipedia article on it.
Pyramid scheme - Wikipedia, the free encyclopedia
I researched about it and in reality this is a scam the first few persons
may profit from it but those at the bottom of the chain will lose there
money (the 60$ they paid for the membership).
One such site is goldmineint.com
In Pakistan this craze started from karachi and many people were lured to it,now this
scam has also spread like wild fire in islamabad universities.
People will try to convince that this company is registered under
Security exchange commission Pakistan(SECP).
Securities & Exchange Commission of Pakistan
Indeed it is but it is a scam.The reason that SECP has not taken action against them is that no one has filed a proper legal complaint against it.However, they have warned people against this scam in a press release of theirs in this PDF file.
The US federal trade commision has also called this thing a scam and gold mine international is listed in the companies that are such fraud companies.
Here is what a Pakistani victim has to say about it.
GOLDMINE INTERNATIONAL SCAM (GMI SCAM)
The people who will refer this site to you will also say that this company is registered in norway. Here is what Norway's embassy in lebanon has to say about it.
Goldmine Int. - No relation (Norway - the official site in Lebanon)
This site shows that who visits this site the most and who is the biggest victim of this scam.Yes it is Pakistan.
goldmineint.com - Traffic Details from Alexa
I hope that people here make others aware(especially teenagers who want some quick cash) about this scam.