Is FrancSwiss a scam?
June 22, 2007
It seems the newest craze in town is not anymore Koreanovelas, Pinoy Big Brother, or celebrity video scandals, but an HYIP “pretending to be a genuine investment program” called FrancSwiss.
The buzz is that even actors like Raymart Santiago and Claudine Barretto and TV broadcaster Korina Sanchez have “invested” in the program. With a 4.5% promised return per day, who could resist this kind of offer?
Without a doubt, hundreds of investors have already made big profits during the past months. But would thousands cry and wail once the program is gone and has stopped paying?
First, let’s understand what an HYIP is. HYIP stands for High-Yield Investment Programs, supposed investment programs that offer high returns with a corresponding high level of risk. These programs promise a return so high even the best investment banking companies would not dare offer.
But HYIPs disappear so quickly and, in most cases, do so without a trace. One day the site’s up and the program’s paying, but the next day you access the site and get a “Page Not Displayed” error and then you stop receiving payments from them. You cannot run after the owners because, in the first place, you do not know who they are or where they live. The names and addresses, if ever given, are usually fake.
A Ponzi History
HYIPs are not new. In 1919, Charles Ponzi started an “investment” program that paid investors 100% of their investment in just 3 months (1.11% return per day). What investors did not know, however, was that recent investments were used to pay off older investments. When less and less people invested, newer cash were not anymore enough to pay off older investments. Consequently, the pyramid scheme collapsed and thousands of people lost money in the process. Charles Ponzi was jailed and, from then on, the name Ponzi stuck and became synonymous with pyramid scams.
Plethora of scam HYIPs
In recent years, hundreds of HYIPs that are actually pyramid schemes have sprung up on the internet every day. There’s StudioTraffic, the so-called “big daddy” of autosurf programs that peaked in 2006, offering 1% return per day and was able to last for more than 2 years.
There’s PIPS, PhoenixSurf, 12DailyPro, and a plethora of other “investment” programs that paid consistently for a period of time but in the end also folded up and scammed people with thousands or, at times, millions of dollars. For a list of online investment programs that are now considered scams, visit our Scams and Closed Programs Discussion Board.
Is FrancSwiss a scam?
FrancSwiss, we believe, is no different from other online investment programs that flourished in the past. Regardless of the consistency of payments, SEC registration or a brick-and-mortar office, these programs eventually end up as a non-paying scam.
So Is FrancSwiss a scam? Not yet, but it will be. Soon.
Trust us. We’ve been there and done that.
- What type of HYIP investor are you?
- All you need to know about HYIP investing you will learn from scammers
- HYIP scammers teach us the secrets how they did it
Talk about FrancSwiss in the HYIP: FrancSwiss thread in the PMT Forum.
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