Cash Gifting Is Illegal - Don’t get scammed
Ok, I already know that some people are going to call me an idiot or that I have no idea what I am talking about, but I am just going to say it…Cash Gifting is illegal in my opinion and I hope you won’t get scammed like many others did.
So what is Cash Gifting? Well, it’s basically a pyramid scheme where you give cash “gifts”…lol…to other participants in order to join the program. Let’s face it you are joining because you expect to make money from it. Please don’t tell me that you are just giving some stranger money for nothing because that’s basically bullshit.
Cash Gifting used to be an offline scam where people would meet and exchange cash. Many of those groups got arrested and went to jail. Now cash gifting entered the online market, so it’s basically still illegal because there is no difference. Anyway, the only reason why FTC is not doing anything yet is because it would be too hard to track people down. They are all over the country sending each other money through UPS and Fedex.
Here is what really bothers me. You see, some of those cash gifting participants called IRS and recorded the message asking them if it’s illegal and got an answer that it was fine…lol..I imagine that the phone operator didn’t really know much about it and was caught of guard with that question.
Another thing about this whole cash gifting is that people are posting videos all over the web showing how much money they made using those programs. I am sure you have seen some of them showing envelopes with cash. If you didn’t then go to YouTube and search for “cash gifting”. You will find hundreds of them.
Now if you ask any of those people that are in cash gifting business about the legality of it, they are going to say that it’s perfectly legal. They are going to show you some recorded messages with IRS or some other BS to get you into the program. They also make you sign this little piece of paper stating that you don’t expect anything in return and that you are basically just giving them money..lol
I called a lawyer here in my local town and he said that the little paper would NOT hold in court by the way, so keep that mind.
Anyhow, the law says that you can give up to $12,000 tax free to someone. This is mistaken by those in the cash gifting programs because they are using it to make money. The whole purpose of someone joining a cash gifting program is to earn money and not lose it by giving away cash. Come on people, wake up!
Here is some more stuff from MLM Watch Dog that I think you should read too.
Here is how most of the Cash Gifting programs operate online. Usually it’s a 1 up where you pass up your first “gift” :) to your sponsor. Then after that you keep all the gifts and those need to pass up their first to you too. So with that said, you can see that you will need to promote it all over the web and get people to the program. At the end there is always someone that doesn’t make money so they lost in this whole deal. As you can see you need to constantly get new suckers into cash gifting programs otherwise you won’t make money and that’s why you would join one anyway.
I say that cash gifting programs are illegal and it’s just a matter of time before the authorities catch up with them. I highly recommend that you stay away from them and save your money. There are a lot better ways to make money online than cash gifting.
Feel free to post your comments below, but I have to warn you that I won’t approve any comments with profanity.
Stumble it!
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November 23rd, 2008 at 12:44 pm
I got scammed by them. I am so stupid for doing it, I really feel bad. The guy I joined with told me I would make lots of money but after 3 months of doing exactly what he told me I didn’t make anything. Now I see everywhere that cash gifting is illegal and all that stuff, so it really bothers me that I got sucked into this scam. I hope more people find this article and don’t join them.
November 23rd, 2008 at 4:56 pm
I don’t agree with your post. I mean everyone is entitled to their own opinion, but cash gifting has been proven to be legal so many times. Why some of them have been around for so long then? I know some that were in business for years. If this was illegal then don’t you think the government would do something about it? I agree that you need to know how to promote and if you don’t then yes you will fail, but it doesn’t make it an illegal activity.
November 24th, 2008 at 8:11 pm
Dude, you have don’t know what you talking about. It’s funny how anyone can set up a blog and post lies like this. I have been with a cash gifting program for 3 months now and made over $20k so far. It has helped my family and basically took us out of the financial hole we were in. My credit cards are paid off and I don’t have to worry about my bills anymore. The only thing that comes out of gifting is good. There is nothing illegal about so stop posting this BS on your blog. Seriously, why don’t you join one of them and see how profitable it can be. I also called a lawyer in my county and explained in detail what I was going to do and was told that I had nothing to worry about. So there you have it. It’s legal and it works!
November 25th, 2008 at 12:38 pm
Randy, you say you made $20k so you joined it to make money and that’s what makes it illegal. You made that money because you managed to get some people into it thinking they are going to earn money too. Once they don’t see any return they are going to be pissed off and start complaining to authorities or even start calling you to give them their money back. Did you read the article on MLM Watch Dog? Seriously dude get educated first. There is nothing legal about the kind of cash gifting that is going on on the Internet. It’s just a matter of time before it gets crushed by the feds.
Pawel
December 3rd, 2008 at 9:14 am
I absolutely agree with Pawel. It’s great to see that someone actually came out there and said it. My friend joined this cash gifting thing like 2 weeks ago and wanted to recruit me, so I decided to do some research. I am amazed how everyone online is making it look like it’s a legitimate business or something. This is a typical ponzi where you need constantly recruit new suckers to make money plus there is no product being sold. This is one of the biggest scams I have ever seen on the Internet.
December 14th, 2008 at 3:24 pm
I don’t know if gifting is illegal or not… but it’s DEFINITELY a scam. I have tried several of these schemes of the years and the most I’ve ever earned is $5. It’s like most MLM… the people at the top make all the moneya and the poor shmucks at the bottom of the pile get nothing. Regardless of what name you put on it, it’s still a ponzi scheme. There are better ways to make money online than “gifting” your money away.
December 17th, 2008 at 4:59 am
Old cash gifting programs were illegal because they controlled the gifts and sent them out, meaning they handled over 12,000 dollars worth of gifts per person in one year. The law states you can gift any person up to 12,000 dollars per calendar year. Check out my video
December 20th, 2008 at 12:15 am
i disagree for one reason. i am not part of this. nor will i fall for it. it is a scam. however, if people are stupid enough to give away money with something like this. it is just that. stupidity. how is it any more illegal than the preachers asking for a 1,000 seed gift to be sent to a certain church? it isn’t. whether people expect to make money or not. they are just plain old suckers and that is what is preyed on. stupidity.