Sceptical about friend’s invite to join Bitcoin/forex app

MrsCautious

Hello,

I’m after some wisdom. I hope this is the right place. I suppose I’m living up to my forum user name here!

I have friends who are into ‘network marketing’ and are reps for certain products, so far these seem to have been beauty, skincare, weight loss etc.

They appear to have added an investment product to their offers. One of them has contacted me, wants me to join something called USI TECH. She sent me a link to a YouTube video and said she was making money from it. Another friend has just posted on social media it’s making her 1 per cent a day.

It’s described online as a forex/bitcoin app - I have said no I’m not interested.

My friend was put out I think that I didn’t jump in. She says she’s really excited about the opportunities it’s going to bring her. I’m feeling negative about it, am I right to be so cynical?

I know nothing about these schemes but I do know if something seems too good to be true, it usually is?

Feels a bit like netmums but am I being unreasonable in being sceptical about this?

I have money invested elsewhere and in current bank accounts, am I missing out by immediately dismissing this forex/bitcoin suggestion?

Thanks so much to anyone who can talk sense to me about this.

ColdIron

Took me less than 30seconds to find this

Here is how the scam works:

1. They use ridiculous rates of return to get you purchase their products.
2. They get you to recruit your friends and family into a pyramid scheme.

I do know if something seems too good to be true, it usually is?

Go with your gut

http://ethanvanderbuilt.com/2017/07/19/usi-tech-scam-yes-opinion/

badger09

You are right to be sceptical.

The 'networking marketing' schemes your friends have been involved in, rely on persuading other to join the scheme, thus generating income for them and for the schemes' founders.

Good luck to both of your friends, but if they are real friends, they shouldn't be put out by your refusal to join them in something you don't understand.

Your gut instinct is also telling you this is too good to be true, and, like many other 'investment opportunities' it almost certainly is.

This is the first link that came up in a google search. I cannot vouch for the author, but have a read anyway and let us know if you've changed your mind.

http://ethanvanderbuilt.com/2017/07/19/usi-tech-scam-yes-opinion/

k6chris

Hi there, Forex trading is a very high risk form of gambling and whilst some people do make money from it, there are many more that do not and lose a LOT of money. It is very highly leveraged, meaning you can lose a lot more money than you initally invested. You friend will tell you that their system / app / lucky charm avoids or reduces these risks, that is simply not true. If you want to read more about these risks then here is a link to a research paper on the subject as well as a survey of over 100 retail FX traders;

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2711214

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2795927

At best, it is very high risk and only for 'investors' with money they can afford to lose and a detailed knowledge of the risks they are taking. I don't know enough about this particular case to know if it is a 'scam'. I would smile politely and tell your friend you will be delighted for them to take you out for a meal when they have made their fortune.

Thanks, but no thanks.....

MrsCautious

Thank you so much everyone - I hate to say I suspected this to be the case. I told my friend straight more than once I wasn’t interested. I’m feeling bad for them that they should be involved.

badger09

MrsCautious wrote: »

Thank you so much everyone - I hate to say I suspected this to be the case. I told my friend straight more than once I wasn’t interested. I’m feeling bad for them that they should be involved.

Knowing a little about you from another thread, I suspect your judgement may still be affected by recent events in your life, but its very clear that your instincts are fully functioning:T

If these are true friends, they will respect your refusal, even if secretly thinking you're a mug for missing out on this great money making opportunity. If they want to risk their money, that's their problem, not yours.

Keep being MrsCautious, don't stress about these 'friends', and be kind to yourself.

le_loup

MrsCautious wrote: »

My friend was put out I think that I didn’t jump in. She says she’s really excited about the opportunities it’s going to bring her. I’m feeling negative about it, am I right to be so cynical?

I'm sure she is.
Friends don't try to make money from friends.
Or am I being old fashioned - this world only seems interested in the money making opportunities.
Please give this opportunity a miss.

ChesterDog

Your friend is discovering that the 'simple' requirement of pulling in lots more people, upon which her success depends, is not very simple at all.

It's a lesson being learned.

MrsCautious

Really grateful for your replies thank you and thank you badger09 for taking the time to say that, you’re right of course. I’m taking my time. It wound me up that they thought I’d dive in to something like that without questioning it, and that the way it’s being marketed is among friends by saying how excited they are about it.

The_Real_Cheddar_Bob

i too have friends who are into their "network marketing". It has taken some time, but since the approach to us about lease options, we have drifted apart.

A lot of these schemes are pyramid selling ideas which have been labelled as new and innovative. They can be unscrupulous and seek out the materialism in almost anyone

cheerfulcat

This blog, by a girl who fell for a network marketing scheme, might be of interest - https://ellebeaublog.com/poonique/ ( shows how an outwardly decent person might turn into a marketing monster! )