Consumers are warned not to respond to chain mail that arrives out of the blue and promises big returns for a small investment.
Consumer Affairs Victoria is aware that ‘David Rhodes’-style letters are circulating again. People who respond to this type of letter or email are likely to lose money. They may also be breaking the law if they encourage others to take part in an illegal pyramid scheme.
The letter from ‘David Rhodes’ asks recipients to send $10 to one person from a list, add their own name to the list and forward the letter on to several friends, acquaintances or people selected at random from a telephone directory. It promises that they can turn an investment of as little as $31 into more than $77,000 by following exact instructions.
Letters and emails like this are a scam. There is no benefit – all it does is waste your time and money, and put others at risk.
Warning signs include:
- you receive a letter or email promising money or good luck if you follow instructions to copy and send the letter (and its request) on
- it warns that if you don’t take part, you will experience bad luck or lose a fantastic opportunity
- a token coin is included with the letter as ‘a demonstration of good faith’
- the letter or email states ‘this is not a scam’ or ‘this is not a pyramid scheme’
- the letter or email contains testimonials from people who claim to have received a large amount of money by complying with its instructions.
Anyone who receives this type of letter or email should ignore the sender’s instructions and contact us.
If you have already forwarded this type of offer to other people, contact them immediately to tell them the offer is a scam and may be illegal.
For more information about pyramid schemes, view our Pyramid schemes page.