Zeek Rewards - Penny auction site

[pavilion103]

I'm not sure if anyone has come across this affiliate marketing opportunity before but was hoping to get some opinions.

I have no doubt that this is a ponzi scheme but wanted to get the thoughts of others.

They claim that you are buying bids to distribute to generate traffic. But they pay on average 1.5% per day compounded. Each day you "buy" more bids with the amount in the account and then get another 1.5% on that.

Initial purchase is $1,000 - $10,000

They claim that 50% of the profits are distributed to the affiliate members who simply re-purchase bids each day and distribute them and place 1 add per day (which is already created by the company).

I will certainly not be getting involved with this but wanted to check if anyone else has come across it?

 

[Gunlom]

Members of my family are involved in this, when they first told me about, I warned them about it, saying things like 'if its sounds to good to be true chances it is' and ' risk =return, so if the return is large, the risk most be large too'

And if Zeek Rewards truely made this much money , why would they be seeking small retail investors with extremely limited knowledge spread around the globe? . When they could keep the cash them selves??


(one of there close friends of thiers are now pulling 3k a week out of it, they have seen the bank statements to verfiy it) And my immediate family after 3 odd months are now pulling out $$100-200/week. After putting in $3k plus $99/month ongoing. How long this lasts I'm not sure? There account balance online is 7-8k atm ( i keep suggesting pulling out the full initial investment of $3k , to see if they will let you pull it out) I know just because a web site says you have this money , doesn't mean they will give it to you!

I know logically it just can't be legitimate , just on basic commonsense, and rules of investing/economics.

However I said I'll go along to the next meeting, because they can barely explain what they are involved in, to me when I ask questions. There is something very fishy about the whole thing. But they seem hooked atm, so it doens't really matter what I say, I don't think I could change there minds.

I'm very interested in understanding this scheme/scam, so I can explain to them what there involved in. Anyone just looking into Zeek Rewards can get bamboozled with information.

Anyone else with more info I would love to hear about it

 

[Julia]

I'd suggest getting the family to pull at least their profits out and see if it happens.

 

[tech/a]

GO to their legal section
You'll find you are re deemed not in cash but
In Zeek purchase packages.

 

[pavilion103]

GO to their legal section
You'll find you are re deemed not in cash but
In Zeek purchase packages.

Tech, are you fairly familiar with Zeek? I'm still a little unclear on it all.

I've got a mate who has been pulling out cash. It seems like he is making good money from this, even though it is eventually doomed to fail. This is the thing that annoys me. It appears people are making money.
It's impossible to talk people out of it when they see money actually going out of their Zeek account and into the bank account!!!


The dodgy thing I reckon is that you put $1,000 in and supposedly buy bids to give away but then you earn 1.5% on the $1,000. The account stands at $1,015 the next day then you are buying $1,015 worth of bids and earning 1.5% interest on it.
How the heck can someone be "buying" thousands of bids every day when only $1,000 was put in to begin with. It's like you buy bids and give them away and then Zeek gives you $1,000 back. Essentially you are buying nothing, if I understand correctly?

 

[Gunlom]

I have numerous times told my family members , to pull there full intial investment out, but there are just seeing the dollars signs atm.

Not sure there is much I could do or say to change there minds , while it is going well!!

Although looking into it, they are getting commision from everyone under them, a classic multi level marketing.

It's like watching a car accident about to happen, but not knowing what to do about or how to stop it! It's like anything else in the world, if you want to believe in something you will!! And it's very hard for someone to change there mind.

I think all I can do is to keep gentling proding them, to at least not put anymore money in it!

 

[So_Cynical]

Its really quite amazing to me when seemingly normal people seem to not know what a ponzi is when they see it.



No wonder scum bags just keep doing this stuff when a certain percentage of the general public are more than happy to throw money at them....based on the fact they they will then throw a little back.

 

[pavilion103]

So what is the end result here when it collapses? People simply lose any money built up in their accounts?

I guess at least people will only lose their initial $1,000, the rest just being fake paper profit built up over time.

Still I can see people going in and making short term gain if they are pulling out cash. I don't know how long that will last. Not a way I want to make my cash that's for sure!

 

[pavilion103]

Zeek now shut down! As expected

 

[ROE]

They need to start teaching kids in school
that if something is too easy and sound too good just apply the simple logic.

if you can do it that easy, everyone else can as well and no one need to work and who end up
paying for the profit and there is no secret formular EVER

a lot of people fall for this because they think they are the only one who know this stuff
their secret formular -

 

[skc]

Zeek now shut down! As expected

Cool. Largest ponzi scheme ever measured by number of "investors".

The power of social media!

 

[basilio]

Not quite the largest Ponzi scheme ever SKC..

The one I followed that managed to extract hundreds of millions of dollars from punters and last a few years was

PIPS. People in Profit system.

Very clever, very persuasive scam. I watched a few friends go for a long ride on this group. Worth a look. It took years for this Ponzi schemem to fall over and then it was only achieved by private action not government interventation.

http://www.guardian.co.uk/money/2004/dec/11/scamsandfraud.jobsandmoney
http://juneauempire.com/stories/042405/opi_20050423003.shtml
http://www.fraudguides.com/pips_investment_scam.asp

 

[Gunlom]

Well the hammer has dropped on this auction site, hopefully my family members will learn something from this process, they had about a 80% loss. And thankfully it was only a reasonably small amount of money thrown at it, nothing that is going to mess up there future.


But there will always be more suckers out there for the next one.

 

[Glen48]

People are still buying property so no one learns and with Face book etc theses ponzi set ups a can go world wide not just you and a few mates at the pub any more.
Stand by for the next one coming soon.

 

[pavilion103]

Agree RE property market.

I sold all mine in the last 24 months. Relieved to be out!

It's the same sort of thing really!

 

[Steve C]

Agree RE property market.

I sold all mine in the last 24 months. Relieved to be out!

It's the same sort of thing really!

So in your opinion renting is the way to go? Why are you so against property at the moment? interest rates and house prices are both low? Is it just fear?

 

[pavilion103]

I have always loved property as an investment vehicle. To be able to set up a passive income stream is very attractive.

It certainly isn't fear. I had 3 properties by 23 (I'm now 26). But I saw the writing on the wall. Thankfully I sold just before prices declined. I recognized it early enough.

I could write pages on why property is a poor investment vehicle at present. But to address your points:
1. Prices are low - according to what? The peak? They are lower but not low. Prices are still way way out of whack. Yields are tiny. Unless there are good yields it's an investment purely relying on speculative capital gains.

2. Rates are low - yes they are. But this shows what a worry it is if there is nothing even close to positive cash-flow while rates are low. What the heck will happen when they eventually go back up???!!!

Prices will either fall sharply or go sideways for a LONG LONG time.

 

[Steve C]

I have always loved property as an investment vehicle. To be able to set up a passive income stream is very attractive.

It certainly isn't fear. I had 3 properties by 23 (I'm now 26). But I saw the writing on the wall. Thankfully I sold just before prices declined. I recognized it early enough.

I could write pages on why property is a poor investment vehicle at present. But to address your points:
1. Prices are low - according to what? The peak? They are lower but not low. Prices are still way way out of whack. Yields are tiny. Unless there are good yields it's an investment purely relying on speculative capital gains.

2. Rates are low - yes they are. But this shows what a worry it is if there is nothing even close to positive cash-flow while rates are low. What the heck will happen when they eventually go back up???!!!

Prices will either fall sharply or go sideways for a LONG LONG time.

Thanks Pavilion - food for thought.