Cashback World Loyalty Card -SCAM

Elaine0123

Lyoness is a scam on an international and industrial scale. It's legitimate guise is it's cash back card/shopping community which, in itself, is not illegal. However, the company actually makes its money from getting members to become 'premium members'/business partners for a fee of around £1.8K. This is sold as an investment opportunity.

To realise any returns (which turn out to be tiny), you have to suck in, sorry... Recruit your family and friends. Australia's national body ACCC (Consumer and Competitions Commission) recently announced they are initiating court procedings against them for operating an illegal pyramid scheme.

As a new user i can't post links but i can direct you to the following for further reading: news.com.au/finance/business/lyoness-cashback-loyalty-card-operator

Wikipedia Lyoness article: see legality and controvery sections:
wiki/Lyoness

Swiss newspaper article about it is translated on Coroporatefraudswatch blogspot (google this with Lyoness)

Please stay away people!!

TARA112233

A warning about the Cashback World Loyalty Card run by Lyoness-
its still running, and it's still a scam.
Norway have recently banned Lyoness from operating and has confirmed it's an illegal ponzi scam.
I've been investigating this company for a few weeks now.
They claim to have big merchants such as John Lewis, Boots, Tescos, Costa Coffee, B&Q, Clarks, Morrison, Nike etc as its merchants but I've contacted them all personally and they've never heard of Cashback World.
This is how they operate:
They lie about the big retailers joining so they can persuade the little retailers/small businesses to join and part with hundreds of pounds plus a monthly fee.
The 'cashback' is paid through vouchers or giftcards from Love2shop (and national retailers). Cashback World are members of Love2shop (and some retail giftcard schemes) and get the vouchers at a discounted rate which they then RESELL to their members at full price. They give back a tiny portion of this discount to its members and keep the rest - which is against the terms and conditions when the vouchers were originally sold.
Add into the mix a range of referral levels and you have a classic ponzi scam.
Although CBW members are indeed getting some money back, it's only possible at the expense of the smaller retailers who are effectively paying THEIR customers to shop at the big nationals instead of them.
There are two exceptions to this though:
ARGOS have unwittingly fallen for the scam, as have Woking Council and I've notified both of them.