Serious Question. Is this a scam?

[RobRamos]

I want to know what opinions are about money gifting sites. It sounds like a scam and at the same time makes sense. Depending on what part of the equation you choose to believe.

What do you think?

[Jared Alberghini]

Cash Gifting is illegal. Stay as far away from it as you can... but that's just my opinion...

Jared

[dogisland]

We have a saying in finance "Where there's yield there is risk"

If it looks like easy money chances are there is a lot of risk attached. Take a look at Cash Gifting Scams, Programs, Forums, & Articles | Cash Gifting Watchdog

[Aaron Elliott]

W T F is money Gifting? It sounds dodgy.

[CmdrStidd]

Kitejunkiee,

Money gifting is where you get into a group, similar to a chain letter and you send a "gift" of $1.00 or $5.00 or whatever the deal is for that go around to the names on a list. You then add your name on the list and pass it on and as you do this other people will supposedly send money to you as a gift. The thing is that these all fall under the label of pyramid schemes and are illegal in many places. The FBI CyberCrimes division has a great big list of these scams and when they got started.

[Aaron Elliott]

arh I have actually got 3 of these in the mail, telling me to send $10 to the first person on the last ( attached was 5 cents - WOW ). How Pathetic

[Scott Burton]

Okay, I've sat on the sidelines and watched as the same sentence has come up over and over again.

Cash Gifting is Illegal.

This really irks me on a personal level because it is an incomplete and generalized statement.

In most countries cash gifting in its self is not illegal.
The programs promoting cash gifting, which is what is meant by the above mentioned statement, are in fact illegal in most countries.

I can give cash to anyone I choose. This means the panhandler on the corner, any internet marketer, etc. (If I exceed certain figures, then there are legal tax reporting requirements that come up though)

The majority of cash gifting programs tend to fall into the 'ponzi scheme' or 'pyramid scheme' categories, and are thusly illegal.

[Michael Oksa]

Originally Posted by Scott Burton

Okay, I've sat on the sidelines and watched as the same sentence has come up over and over again.



This really irks me on a personal level because it is an incomplete and generalized statement.

In most countries cash gifting in its self is not illegal.
The programs promoting cash gifting, which is what is meant by the above mentioned statement, are in fact illegal in most countries.

I can give cash to anyone I choose. This means the panhandler on the corner, any internet marketer, etc. (If I exceed certain figures, then there are legal tax reporting requirements that come up though)

The majority of cash gifting programs tend to fall into the 'ponzi scheme' or 'pyramid scheme' categories, and are thusly illegal.

Giving a gift of cash, by itself, is not illegal.

The quote you mentioned calls it Cash Gifitng - the words are capitalized. This denotes it's a title. These programs ARE illegal. Getting into the semantics of it only confuses the issue, and may lead people into thinking it's okay.

There's nothing wrong with you trying to clarify the issue, but we have to make sure we know what we mean when we say giving a "cash gift" vs. "Cash Gifting". By definition, the latter is illegal.

All the best,
Michael

[Rus Sells]

Cash Gifting is illegal and the FTC actually has an article about it on their web site. Basically if your giving something with the expectation to receive something in return it's not a gift in the first place, it's an investment. This is regulated by the SEC which these types of programs don't bother to tell you.

[Michael Oksa]

Originally Posted by RobRamos

I want to know what opinions are about money gifting sites.

They're scams.

It sounds like a scam

It is.

and at the same time makes sense.

Only if you have it "explained" to you.

Depending on what part of the equation you choose to believe.

Believe the side of the equation that's mathematically feasible - that side is NOT cash gifting. The system ALWAYS collapses. ALWAYS.

Look at it this way. Cash Gifters have a lot to gain by getting you to believe in their system. I have nothing to lose by telling you the truth.

What do you think?

That it's a good thing you asked. That they are scams. That you can only profit by hurting others. That you should forget about them and find legitimate ways to earn money.

All the best,
Michael

[Loren Woirhaye]

People are responsible for their own avarice and decisions. Cash
Gifting programs always shut down and leave many people empty-
handed. They could just has easily have invested their money
in a real business with a chance of surviving.

In order to sell cash gifting schemes promoters resort to all sorts
of deceptions. Some network marketing "leaders" get involved
too and ruin their reputations. Leaders of churches do it too,
tearing communities apart.

There are so many better ways to invest your money, both from
a point of "the golden rule" and in terms of getting a sustainable,
long-term return.

[carolwingert]

I would stay clear of anything that wants you to send "strangers" cash in the mail. How dumb to think that you can get "easy" money by sitting back and waiting for the mail??

[rayray7]

cash gifting is not illegal. The only requirement is you state clearly what you're doing and not cloak it sales speech.

[Craig Fenton]

Hi Rob:

Hope you are well. Programs that fall under the category of "Cash Gifting" are illegal in a great part of the world. A great deal of legal minds put it simply that ther has to be an exchange of product for the funds charged. Your neighbor can't have you give them ten dollars and you get the other neighbor to pay you but....

If the neighbor wanted to charge you 10.00 for a book it is okay because there is a tangible exchange of money for a product or money for advice.

Hope this helps and please avoid any ads that seem too good!

[Traffic-Bug]

I never understood what is cash gifting all about. I dont think it is a scam unless it is some kind of pyramid scheme

[Floyd Fisher]

Originally Posted by rayray7

cash gifting is not illegal. The only requirement is you state clearly what you're doing and not cloak it sales speech.

And pray tell, how can you clearly state what you're doing? Would you mind showing me the proper disclaimers on this one?

[tobilove23]

I would stay away from cash gifting

[Chris Lockwood]

Originally Posted by Scott Burton

In most countries cash gifting in its self is not illegal.
The programs promoting cash gifting, which is what is meant by the above mentioned statement, are in fact illegal in most countries.

The majority of cash gifting programs tend to fall into the 'ponzi scheme' or 'pyramid scheme' categories, and are thusly illegal.

Come on- do you really not get that when people say "cash gifting" here, they are talking about the programs that you admit are illegal?

Of course it's legal to give a gift to a friend- who is debating that?

[Brad Gosse]

I have looked over these sites with their videos of fedex packages full of cash. Looks tempting.

In 1998 I participated in a chain letter that began with me spamming over 100k people to perpetuate my position. Before long my PO Box was filled with $5 dollar bills every day.

It ended with a letter from the US Postmaster General.

[Chris Lockwood]

Originally Posted by Brad Gosse

I have looked over these sites with their videos of fedex packages full of cash. Looks tempting.

In 1998 I participated in a chain letter that began with me spamming over 100k people to perpetuate my position. Before long my PO Box was filled with $5 dollar bills every day.

It ended with a letter from the US Postmaster General.

Did his letter include the $5 bill?

[Brad Gosse]

Originally Posted by Chris Lockwood

Did his letter include the $5 bill?

LOL Sadly no. Makes me think of of the Seinfeld episode where Wilfred Brimley plays the postmaster general to scare Kramer.

[Gene Pimentel]

Giving cash to someone, or to many people, is not illegal.

An organized program for giving cash to others for the purpose of expecting to receive money in return, IS illegal.

[FearlessIncome]

I'd imagine that people who work at FedEx and are aware of cash gifting programs can put a stop to it fairly quickly...

by opening all of the express envelopes and keeping the cash

The recipient would never know

[Loren Woirhaye]

In the U.S. it is mail fraud to mail over a certain undeclared
amount over state lines. I don't know what the amount is
but it's probably not over a couple hundred bucks. Secretly
mailing $1000s in cash across state lines would be clearly
a violation of federal laws which are there to prosecute fraud
and money laundering.

I haven't researched the mail fraud issue deeply so don't bother
challenging me about it. What I do know is that organized
cash gifting is probably relatively hard to prosecute without
use of the mails, but once it goes in the mail it's pretty clearly
a duplicitous/criminal activity according to postal laws.

[Brad Gosse]

Originally Posted by Loren Woirhaye

In the U.S. it is mail fraud to mail over a certain undeclared
amount over state lines. I don't know what the amount is
but it's probably not over a couple hundred bucks. Secretly
mailing $1000s in cash across state lines would be clearly
a violation of federal laws which are there to prosecute fraud
and money laundering.

I haven't researched the mail fraud issue deeply so don't bother
challenging me about it. What I do know is that organized
cash gifting is probably relatively hard to prosecute without
use of the mails, but once it goes in the mail it's pretty clearly
a duplicitous/criminal activity according to postal laws.

The ones I have seen use FEDEX, since they are a private carrier the same laws do not apply.

[Loren Woirhaye]

Believe me, it's still considered a crime by the feds.

[BrookeS]

sounds risky to me

[Brad Gosse]

Originally Posted by Loren Woirhaye

Believe me, it's still considered a crime by the feds.

I hear that It just doesn't fall under the Postmaster General's jurisdiction. I think the FBI/FTC and maybe the Federal Reserve on the other hand...

[ajsmith]

It's illegal, but having said that I know someone who had a good run with it. The amount was much larger than $5. It was more like $1000. Someone talked her into borrowing the amount off of her credit card, and then she talked 5 other people into doing the same. Plus I believe that the 1st 2 sales were passed up to her from the people she brought in.

She did well for a while. Way too risky for me!

[valerieSONORA]

Short, simple answer: Stay Away!

[Scott Burton]

Originally Posted by Gene Pimentel

Giving cash to someone, or to many people, is not illegal.

An organized program for giving cash to others for the purpose of expecting to receive money in return, IS illegal.

This is the distinction that I was attempting to make, although I'm a little disappointed to see that several people would rather try to argue that I'm defending cash gifting programs, when, like it appears you and others are, I am merely attempting to clarify the distinction.

Originally Posted by Chris Lockwood

Come on- do you really not get that when people say "cash gifting" here, they are talking about the programs that you admit are illegal?

Of course it's legal to give a gift to a friend- who is debating that?

Well, frankly it looks to me like several people either choose not to make the distinction or don't understand the distinction. Not everyone who comes here is a 'hardened veteran' of marketing, 'legal eagle' etc. Which means that we can not assume we know everything the inquirer means, nor can we assume that every reader understands the difference.

It would be akin to me assuming everyone knows what it means to say that any polled ram in my flock is automatically a cull.

(yes, I have sheep, goats & other animals.)

Originally Posted by Michael Oksa

Giving a gift of cash, by itself, is not illegal.

The quote you mentioned calls it Cash Gifitng - the words are capitalized. This denotes it's a title. These programs ARE illegal. Getting into the semantics of it only confuses the issue, and may lead people into thinking it's okay.

In this case, I simply grabbed the previously mentioned 'cash gifting' line, which sparked me to enter this conversation. However, I have seen it written many ways, not always indicating a title or a particular program. I was unaware of any specific program by this name (although it doesn't surprise me to know it exists), but the OP did not bring "Cash Gifting" the program to this conversation. He said money gifting sites which does not denote any specific program. And depending WHICH sites he is referring to, they could be legitimate (although he is probably referring to the 'give money to so and so, and then so many people will give to you' variety.

I have personally been involved with a different kind of gifting site, which is truly gifting. The givers are not receivers. Instead it is given just to help. No returns, no marketing, no scams.

Originally Posted by Michael Oksa

There's nothing wrong with you trying to clarify the issue, but we have to make sure we know what we mean when we say giving a "cash gift" vs. "Cash Gifting". By definition, the latter is illegal.

Which the OP said only money gifting sites. (see above)

In the context possibly intended by the OP, and in the context many people here have assumed to be the intention, money gifting sites are not legitimate. In the context of some sites I have been associated with in the past (see above explanation) such a term can be rightly associated with what is actually legitimate.

I try not to assume that I know what everyone means. Which is why I try to clearly define the distinction.

[Michael Oksa]

I know you meant well, Scott, but here's where I'm coming from.

By saying that "cash gifting" can be okay, even in reference to legitimate giving of gifts, you are confusing the issue. In effect, you're helping the scammers. I know that's not your intention.

The reason is simple: Nobody refers to the legitimate type of giving a gift of cash as "cash gifting".

"Hey, I don't know what to get Tom for his birthday. Maybe I should consider cash gifting him $20"

It just doesn't make sense. HOWEVER, the scammers want it to make sense. Scratch that. They NEED it to make sense.

The only time I have ever heard it referred to as "cash gifting" is in reference to some contrived scheme to separate people from their money.

Admittedly, I may lead a sheltered life where I haven't heard people use the term in the way you suggest. That's no big deal, I just wanted to try to clarify what I'm getting at.

All the best,
Michael

[RobRamos]

Thank you all! You've clarified the entire thing for me. Yes I did me "Cash Gifting" I should have stated that fact.

[thegadgetblogger]

Thanks for all the advice, I've seena few of these kicking was initially pulled in, now I know for sure just to ignore them!

[Eric Lorence]

The ones that own the websites are the ones making any money...

And it's illegal.

The ones that start the scam are the ones that see any profit.

And those 2nd, 3rd, tier testimonials?

Fictional, or partners whom helped launch the scam.

"Joining" the program will cost you money, they need you to join to maintain the money flowing into the scam.

Hope that clears it up a little...

[RedMatrix]

7 Years ago, my mom fell for one of these Cash Gifting pyramids. She didn't even have any money, and asked me to loan it to her. It was $500 so that she could go in "halfers" with her brother. This pyramid needed her to bring in 2 people with $1,000 each, and for those two people to bring 2 more, THEN and only THEN would my mom get (half of) 4,000.

Well, she was in the #5 spot, and the whole thing got raided right before she was to get her "gift." The only people that made money were the first 3 levels.

I knew better, but who could resist their mom? She said she would pay me back out of her disability check (which was the same amount). I let bye-gone's be bygones.

STAY AWAY from them.

[digileaf]

I am embarrassed to admit that I paid my $5 to one of these about 8 years ago. I didn't even get a cent back.

I've never admitted it to anyone before ... and now I've gone and posted it on the web

[Gene Pimentel]

Originally Posted by ssteven561

1. People got sick and tired of all the hassles of traditional businesses of selling, peddling, merchant accounts, refunds and charge backs. Today’s on-line marketers have gravitated to cash gifting programs because it’s finally structured correctly. The cash gifting process is correctly flowing from the giver of the gift to the receiver of the gift. There is no middle man, no MLM, no pyramid, no hidden scheme. It’s strictly a cash gift and nothing more then that! That's the beauty!

Oh really? Show me one cash-gifting program where the giver gives the cash gift without expecting to receive cash gifts from others in return.

Originally Posted by ssteven561

Everything is backed up with the proper paperwork that you can take to your CPA and go to work on your tax return

Just because you can write off a cash gift, that doesn't mean that the cash giving program is legal.

Originally Posted by ssteven561

2. Cash gifting programs finally came out with some very powerful automated on-line systems that do most of the heavy lifting, even for the brand new people. This allowed internet marketers to leverage the power of the systems to teach and train their new prospects the correct way. With that type of duplication, cash gifting systems became an absolutely unstoppable force on the internet.

Automation, leverage, whatever. An organized program for giving cash to others for the purpose of expecting to receive money in return, is still illegal. The only "correct way" is to give cash without any expectations.

[Samuel Lee]

Would agree that cash gifting has had a questionable reputation, so it would be best to avoid and focus on other methods of cash generation! On the surface it seems that its easier, but it's illegal! There are better and legal ways for sure!

[stevenh512]

Originally Posted by TMG Enterprises

I look at it as creative panhandling - if you wouldn't stand on the street corner begging for money, why would you do something like this?

You know, when I lived in Los Angeles I used to know a guy who made a pretty nice living panhandling in front of the courthouse. When he told me "I make enough money doing this to put myself up in a penthouse suite in Beverly Hills every night." I told him "I think I'm in the wrong business."

[Rus Sells]

Originally Posted by rayray7

cash gifting is not illegal. The only requirement is you state clearly what you're doing and not cloak it sales speech.

It is illegal no matter how you "Package" the Pitch.

There are two factors which make it illegal, the first one I mentioned in my first response. The second I eluded to but did not explain

Giving with the expectation to receive something in return, and
because there is no actual product, Real or Digital.

The "GIFT" would be considered a "Security" for an "Investment" which is regulated by the Securities and Exchange Commission. The program would then need be registered to sell Securities and disclose certain things by law.

Here's a link to the Alert about Cash Gifting from the FTC site, read it and head the warning!!!

The Gifting Club "Gotcha"

[dsmpublishing]

whatever you do stay away from it - pure scam!

[GreatBiz]

Yes, these are pyramid schemes where there is no real product in the transactions. Steer clear of them as they are illegal.

[Asher]

Giving cash as a gift is not illegal.

Giving cash expecting something in return, however,
is clearly not right. Otherwise, bribery would have
been legal.

It sounds good and all but if it sounds too good, it
almost always usually is. Stay away from it.

Asher

[reynald2790]

Yes, I do believe that giving cash gift is very illegal. You must earn it from yourself not from getting it from nothing. It is very useless taking money that is not your job.

[earlkohn]

Here's my arguement.... if it's illegal, how has it survived all these years? The IRS clearly has the authority to shut these programs down if they wanted to but they haven't. I don't know where to go with that one Rob!


-Earl

[Teresa Coppes]

Originally Posted by earlkohn

Here's my arguement.... if it's illegal, how has it survived all these years? The IRS clearly has the authority to shut these programs down if they wanted to but they haven't. I don't know where to go with that one Rob!


-Earl

The IRS wouldn't be the ones shutting them down, it's the FTC. And in fact there have been numerous arrests made and programs shut down because of them being illegal. But when one closes 20 more open so it's a very tough job.

[Peter Soos]

Earlkohn,

Actually, it's under the Federal Trade Commission and your states Attorney Generals office to run these operations into the ground. The IRS basically only comes into play when taxes are avoided. The first 2 groups in the alphabet soup mix (FTC and AG) are usually after the initiators since that is where the money is. Some move it or are really located offshore and one I was aware of changed contact info about every 3 weeks. A lot of money got lost but can you imagine some gov employee trying to track it down? It really isn't like on TV. (Movies are Kool!)

[Floyd Fisher]

Originally Posted by earlkohn

Here's my arguement.... if it's illegal, how has it survived all these years? The IRS clearly has the authority to shut these programs down if they wanted to but they haven't. I don't know where to go with that one Rob!


-Earl

Bernie Madoff ran a pyramid scheme for 30 years.

Does that answer your question?

[jblack]

Originally Posted by RobRamos

I want to know what opinions are about money gifting sites. It sounds like a scam and at the same time makes sense. Depending on what part of the equation you choose to believe.

What do you think?

Depends upon where you live. Cash Gifting is illegal in the US.

Beware....If the people who give you money never get anyone else to give them money, it can ruin friendships. JMHO