Indicators of an Online Scam - A detailed Breakdown

We regularly receive emails from victims who fell victim to online fraud. A lengthy email received from such a victim illustrates a classic case of an online scam, combining elements of deception, exploitation, and manipulation. Below are the key indicators of fraud based on the email, highlighting the common tactics used by scammers to defraud individuals under the guise of a legitimate opportunity.

Unrealistic Job Offer and Potential Earnings

The victim is recruited to perform tasks that seem too good to be true: simply posting favourable reviews on an e-commerce platform in exchange for commissions. Scammers often lure victims with easy, high-reward tasks that require minimal effort. This type of job usually raises red flags for the following reasons:

• The job involves posting fake reviews, which are unethical and illegal and should raise questions about the platform's legitimacy from the start.
• The promised commission structure (1%-50%) for such simple tasks is suspiciously generous and inconsistent with standard industry practices.
  
  

Unexplained System Changes and Escalating Requirements

A key element in this scam is the sudden increase in the number of tasks and the "upgrade" from VIP 0 to VIP 1 without the victim's consent. Scammers often modify the terms of engagement after the victim is committed, creating scenarios where the victim is forced to invest more time or money.

In this case:

• The system automatically increased the number of tasks from 38 to 43, trapping the victim into completing more tasks without warning.
• The platform falsely claimed that the victim's credit score dropped due to delays, forcing the victim to deposit additional funds, a common tactic to extract more money.
  
  

Request for Deposits to Correct Issues

Another major red flag is the request to deposit funds to "correct" the victim's credit score. Scammers often create fake problems, such as low credit scores or account penalties, that victims must "fix" by making additional payments.

This creates an endless loop where victims are asked to:

• Deposit more money to resolve fabricated issues.
• Continue depositing with the promise that these funds will allow them to withdraw their earnings, which never materializes.
  
  

Unjustified Payment of "Taxes" or Fees

The demand for upfront payment of taxes before funds can be withdrawn is a classic hallmark of many fraud schemes. Legitimate platforms do not ask users to pay taxes directly to them for processing withdrawals.

Key issues include:

• The platform asks the victim to pay taxes on the commission earned, with the promise that the tax will be returned within seven days, which is illogical and points to a scam.
• The victim rightfully questions why the platform cannot simply deduct the tax from the withdrawal amount, a common practice for legitimate platforms.
  
  

Misleading Promises and Contradictory Information

The email exposes contradictions in the scammers' communication, including the promise of tax refunds, quick withdrawals, and eventual access to funds. These promises are designed to string the victim along, giving false hope while demanding more money.

For example:

• The scammer assures the victim that the tax amount will be returned within 1-7 days, which contradicts their earlier claims about the withdrawal process.
• The scammers claim that after a final deposit, there will be no more barriers to withdrawal, a lie designed to keep the victim engaged.
  
  

Fake or Unverifiable Legitimacy Claims

The victim mentions efforts to verify the legitimacy of the platform through Google Trust Services LLC and Cloudflare, but these services are not responsible for validating the legitimacy of websites. Scammers often use partial truths, like certificates or web hosting details, to create the illusion of legitimacy.

In this case:

• Cloudflare provides security and CDN services but has no authority to confirm whether a site is legitimate.
• The victim also contacted the CEO of xxx.com, a legitimate platform, who confirmed no association with xxx.org or xxx.net, exposing the fraudulent nature of the scam.
  
  

Manipulative Communication and Pressure Tactics

Throughout the email, the victim is pressured into taking urgent actions, such as making deposits or completing tasks quickly to avoid penalties. These high-pressure tactics are common in scams, as they prevent the victim from thoroughly evaluating the situation or seeking advice.

Examples include:

• The fabricated complaint about the victim's credit score dropping because they took too long to complete tasks.
• There is a constant requirement to pay penalties and deposit funds, with the threat of losing all previous investments if these demands are not met.
  
  

Lack of Transparency and Customer Support

The victim mentions the difficulty in obtaining clear and reliable information from the platform's customer service, a frequent indicator of fraudulent schemes. Legitimate companies typically provide detailed terms, transparent communication, and accessible customer service channels, while scams rely on vague responses to keep victims confused and compliant.

• The scammers' responses to the victim's inquiries are ambiguous. They promise that deposits will resolve issues without offering proper documentation or confirmation.
• The platform failed to inform the victim about critical details like penalties for delays, task escalation, and tax payments, revealing the scam's strategy to keep victims uninformed.
  
  

Other Red Flags: Unofficial Communication Channels

The victim mentions correspondence with key figures through Gmail accounts and WhatsApp, both of which are unprofessional for official business communication. Scammers frequently use free, untraceable email accounts to conduct fraudulent activities.

Additionally:

• The victim engaged with other "agents" who had also deposited significant amounts of money, which may be part of a broader Ponzi-like structure where existing victims recruit new ones, reinforcing the scam.
  
  

Conclusion: A Classic Fraudulent Scheme

This email has multiple hallmarks of a scam, including manipulative tactics, escalating financial demands, misleading promises, and unverifiable legitimacy. The scammers created an elaborate system to trap the victim into repeatedly depositing money under the false promise of eventual withdrawal.

A summary of the indicators of fraud that are typical to online scams include:

• Unrealistic earning and job promises as well as escalating requirements.
• Unexplained system changes leading to more tasks and penalties.
• Fabricated issues like credit score drops to extract additional funds and requesting additional deposits to correct these and other issues.
• Manipulative communication and pressure tactics.
• Illogical demands for upfront tax payments.
• Lack of transparency and conflicting communication.
• Using unofficial communication channels further distanced the scam from legitimate business practices.
  
  

For victims of such scams, it is essential to stop immediately all communication with the platform and report the fraud to the relevant authorities.

We can assist victims in compiling a forensic report for submission to local and international authorities, as well as other stakeholders such as hosting platforms and cryptocurrency exchanges. However, the process is costly, time-consuming, and slow, and there is no guarantee of recovering the lost funds.