Same old scams

It really IS a constant battle against scammers.

Let’s begin with the Bio Disc. This is a ridiculous mass produced lump of glass that the manufacturers, and more importantly the distributors, claim has some truly miraculous properties.

One distributor claims that “The Bio Disc is a natural energy generating device that produces SCALAR energy frequencies that have no negative side effects. The energy created specifically rejuvenates molecular structures in all liquids. The molecular structure causes any liquid to become more hydratious, taste better and extend shelf life.”

Another claims that the Bio Disc can “influence the body fluid, blood, lymphatic and cellular systems” and that your “blood is cleansed and its cellular elements function as they should, thereby improving your immune system”. Miraculously it also “strengthens chemical bonds within DNA making it more resistant to damage”, can “reverse arthritis, destroy uric-acid in gout, inflammation and much more DISEASE.” The list goes on and on but one of my favourites is that they claim it “binds the tar and nicotine in cigarettes so that the body does not absorb these harmful substances when smoking.”

The manufacturers (a company called Amezcua, based in Hong Kong) claim that it “is made of technically engineered natural minerals which have been structurally bonded in glass, at molecular level, using high heat fusion methods. Through this combination of minerals and fusion techniques, a positive energy field is created.”

Of course this is all complete nonsense. Ignore all the crap (yes, that’s a scientific term) about positive energy, scalar energy frequencies and reversing the effects of smoking.

If you do a little research you find that even the manufacturers make no claims about the Bio Disc. They have a disclaimer which says that it is sold “without any warranty of any kind. Amezcua hereby disclaims all warranties and conditions with regard to this product including all implied warranties and conditions of merchantability and fitness for a particular purpose.”

One of the commonest arguments we get any time we criticise a piece of pseudoscience like the Bio Disc is that we are just pawns of the huge pharmaceutical and medical industry. If you believe the “alternative medicine” loons the big capitalists see these alternative wonders as threats to their profits that must be suppressed. But think about it. If these ghastly capitalist companies were so profit-obsessed wouldn’t they grab the chance to make money from a silly worthless blob like the Bio Disc? If this thing even worked a little then big American pharmaceutical companies would be in there like hyenas.

Let me make this perfectly clear. The Bio Disc is a lump of glass, no more than that.

Actually let me correct myself. It IS more than just a piece of Chinese glass. It’s a pyramid scheme. The guys here selling this ludicrous scam are recruiting people into a pyramid scheme called Questnet. We’ve heard from several people who have been attracted to the presentations these people have delivered either at University of Botswana or Falcon Crest, we’ve heard how they’ve presented the miraculous benefits of this piece of utter crap and we’ve heard how they ask their victims to cough up thousands of Pula to buy the damn thing. We’ve also heard how they offer boundless wealth and prosperity if you join their ridiculous pyramid scheme.

Please don’t waste your money on this nonsense. It’s a scam, it’s a pyramid scheme and it’s a lump of glass. No more than that.

Then there is the Transition Abroad scam.

Transitions Abroad (note the extra S) is a legitimate web site that offers advice and stories on working away from your native land. However their name is being abused by a bunch of scammers. First some history.

In March this year we exposed scammers calling themselves “ITA Work and Travel” who were offering enormous salaries to totally unqualified people in far-flung parts of the world. Most of the victims were offered jobs on cruise ships with vastly extravagant wages, opportunities to visit exotic places and sometimes even a “diplomatic passport”. Of course this was all a scam. The key piece of evidence was that you had to pay $350 up front. The second clue was that they claimed you had to get a US visa from the US Embassy in Pretoria, not from the embassy in Gaborone. When we saw one of these visas that had been emailed to the victim by the crooks we could see instantly that it had been created on a computer. We also sent it over to the US Embassy here in Gaborone who also confirmed that it was a fake.

More recently we saw advertisements from a company calling itself Transition Abroad. This involved the same up-front payment, the same unbelievable offer of employment, the same inconsistencies.

Then we noticed something important. The South African and British phone numbers they gave in the advertisement were exactly the same as the cellphone number used by the ITA crooks in March.

It’s the same bunch of hoodlums as last time. Last time, when they were ITA Work and Travel, they got away with more than P10,000 from some people. Let’s make sure that this time they don’t get away with anything. If you’ve seen the advertisement, don’t contact them. If you’ve already contacted them then make sure you don’t give them any money. If by any chance you’ve already handed over your cash, then, well, err…. sorry, it’s too late.

So what links the Bio Disc and the Transition Abroad scam? They’re both based on lies, lies that are meant to steal your money from you

This week’s stars

· Parnell from FNB for brilliant telephone skills.

The Voice - Dear Consumer's Voice

Dear Consumer’s Voice #1

Hi! I just want to share with you my recent experience with an insurance company. On the 23rd June 2009 during the night thieves got away with my nice set of wheels for my car. I woke up to find the car supported with bricks.

Although I was worried I thought since I have been paying insurance it shouldn't be that bad. I immediately got in touch with Omega Insurance company. My first shock was that I was told I will have to pay a minimum excess of P3,000 the reason being that I am in a group scheme so I kind of cover for the expenses of all the other reckless drivers in the same scheme.

Though I found it unreasonable there wasn't much I could do I want my car fixed and also these are schemes negotiated for us by our administrators at work and until you experience what I did you don't usually know what they signed for. Their part of the bargain has not been forthcoming and as we speak a month down the line my car has not been fixed yet.

I have been dealing with one guy at Omega Insurance (they are brokers for Botswana Insurance Company), and another person at Botswana Insurance Company and every time I call both these companies it's always excuses after another. I have also started getting quotations from other companies because I intend to leave as soon as my car is fixed.

Please assist. What should I do now?

It is quite normal for an insurance company to have an “excess” when you have an insurance policy. That stops you from making minor claims for every little thing that goes wrong which firstly saves them some money but also allows them to keep the premiums down a little bit for the rest of us. The lesson though is to read any insurance policy thoroughly before you sign up for it. That way you might have known about the excess beforehand.

However I do think you deserve a slightly speedier response than you’ve received so far. The brokers are meant to operate on your behalf so I would apply some pressure on them to help you get this solved. I would also hassle BIC to get a move-on as well. If we can help we’ll get onto them as well for you.

Dear Consumer’s Voice #2

I terminated my lease for my flat at the end of May 2009. At the time of the termination I had not settled all my utilities. The electricity bill was on average P800 per month. I was usually only able to pay P200 – P300 per month. As such the arrears accumulated. By the time I wanted to move out of the flat I owed BPC P6,400 and Water Utilities P3,200.

I had an agreement with the landlord that my security deposit of P3,500 would pay off the water bill and make an arrangement with BPC to pay off the amount owed. However, BPC having already disconnected the electricity wanted me to pay the full amount before reconnecting the electricity for the next tenant. This amount is too steep for me to pay in one lump some. But I have so far been able to pay BPC P650, which is how much I can afford to pay them monthly.

A letter from the landlord on 18th July 2009 maintains that they have settled the bills with BPC and Water Utilities on advice from their legal team. Their legal team is however also “opening a file” for which they are charging the landlord P3,800 and my security deposit will pay for June's rent. I was not occupying the flat during that month. In fact the flat was under renovation the whole month for the next tenant to move in July. They state in their communication that I have to pay both water and electricity plus the P3,800 of their legal charges and other charges of P1,600. They say this comes to a total of P15,000 which has to be settled on 22nd July 2009.

I don’t understand why I have to pay their legal fees. Since my deposit was supposedly used to pay off the utilities as well as the P650 I have already paid BPC it should leave and outstanding balance of P5,450. Finally I don't know what the other charges of P1600 are for.

Please assist.

OK, let’s begin with the simple bits. From what you’ve said you shouldn’t have to pay rent for June, so long as you gave the landlord sufficient notice before you left. However, and unfortunately, all the other charges seem reasonable. I would check your lease though. Did it mention what would happen if you left with arrears? You are also clearly entitled to a breakdown of the “other charges” they want you to pay.

Meanwhile at least you are trying to face up to your obligations. I suggest you speak to the landlord and see if you can negotiate a more reasonable repayment schedule. Giving you only 4 days to clear a debt of that amount is completely unreasonable.

If you need any assistance, please let us know.

Excellent article on Loan Sharks

An excellent article on Slate on people's understanding of what the americans call "payday loans".

The Bio Disc

This is the deeply silly Bio Disc that the GenGold and QuestNet pyramid schemers are trying to sell us at the moment.

It's just a lump of glass. The pyramiders will tell you that it has amazing properties based on "nanotechnology" and magical nonsense. The manufacturers say that:

"The Amezcua Bio Disc is made of technically engineered natural minerals which have been structurally bonded in glass, at molecular level, using high heat fusion methods. Through this combination of minerals and fusion techniques, a positive energy field is created."

Elsewhere I found the following claims:

• The Bio Disc is a natural energy generating device that produces SCALAR energy frequencies that have no negative side effects.
• The energy created specifically rejuvenates molecular structures in all liquids.
• The molecular structure causes any liquid to become more hydratious, taste better and extend shelf life.

Anyone with even a primitive knowledge of science will tell you that this is stupid. All they're doing is using some fancy terms they read on the Internet somewhere. I'm surprised they don't mention quantum physics as well.

And does it actually work? No. Even the people who make it confess as much. The Amezcua web site has a disclaimer which says:

This product is sold "as is" without any warranty of any kind. Amezcua hereby disclaims all warranties and conditions with regard to this product including all implied warranties and conditions of merchantability and fitness for a particular purpose.

Nevertheless others make some amazing claims. The Miracle Bio Disc blog claims that the Bio Disc can:

• influence the body fluid, blood, lymphatic and cellular systems.
• Increase blood oxygen level & nutrient absorption.
• Blood is cleansed and its cellular elements function as they should, thereby improving your immune system.
• Strengthens chemical bonds within DNA making it more resistant to damage.
• Reverse arthritis, destroy uric-acid in gout, inflammation and much more DISEASE.
• Binds the tar and nicotine in cigarettes so that the body does not absorb these harmful substances when smoking.

PLEASE don't give any of these charalatans the time of day. You certainly shouldn't give them your money.

UPDATE: I've just been told that they demand a "registration fee" using your credit card before they start selling you the damn thing. Please don't do it!

Consumer tech

I love technology, I really do. Partially it’s because I’m a boy, admittedly a grown up one but part of me is still a kid who likes toys. However I particularly love truly useful technology. My (semi) smart-phone helps me not to forget too many appointments and can also pick up my email and even surf the web when pushed. I adore my laptop and not just because it’s a sub-zero cool MacBook.

I even love my wife’s iPhone, despite it being a catastrophically flawed device that Orange can’t seem to get to work properly.

However, just because I love all this stuff that doesn’t mean I’m an unquestioning supporter of technology in every circumstance. In fact I’ve even done presentations to IT people with a starting slide that says, in big, bold characters “Technology is not the answer”. It’s not just a provocative statement, I truly believe it.

Technology itself it never the answer to a business or personal problem. Of course it can help but the technology itself is rarely the answer.

Example no. 1. Some banks have, in the past, installed silly little consumer response devices at teller stations that allow you to record how satisfied you were with the service you received. A complete waste of time. How can you summarise a service experience with the press of a button. You can’t summarise all your feelings about the temperature, the speed of service, the smile on the teller’s face, the interest rate you are paying by answering the question “Are you satisfied? Yes / No / Don’t give a damn”. It isn’t that simple. Life and service are much more complicated than that. Those devices are a complete waste of time and are simply a distraction from the real business of service. They’re also a way for the customer service people to say they’re doing their job when in fact they’re not.

Example no. 2. The big one. e-Government. Our esteemed Government have embarked on an “e-Government project”. Put simply this is a way of allowing consumers, citizens, businesses, whoever, to connect to Government electronically. Maybe eventually we’ll even be able to file our tax returns, apply for replacement driving licences, all sorts of things on-line. No more will we have to queue up in Government offices to do the basics.

Perhaps. I suspect not. While I love the idea of e-Government I much prefer the idea of Good-Government first. Just plastering a web site on top of an already failing process is a waste of everyone’s time. It’s just like wallpapering over a cracked wall. It doesn’t solve any problems, it just briefly hides the problems underneath. That wall will still eventually collapse. The old Government process behind the fancy new web site will still eventually collapse and fail, leaving consumers mightily pissed off.

The solution is to make the old-fashioned processes work first and THEN spend money on technology. There’s no point in buying a better, faster, sexier car if you can’t drive yet. Learn to drive first, get a cheap, reliable car and then gradually upgrade to your dream car. Same with “technologising” processes.

So am I completely pessimistic? Not entirely. There ARE examples of where technology has worked very nicely. My favourite at the moment is the new Government food basket system. In the past the destitute and another groups steeped in poverty have been given food baskets by our benevolent government and quite right too. It’s one of the few real jobs of Government: to assist the utterly poor to get out of poverty. However, as anyone connected with the old system knows, the process was deeply flawed. People were given what Big Brother decided they should have and often ended up with rotten, expired goods. The system was also horribly corrupt. I’m sure many of us have heard the stories of the bribes, the theft and the abuse. So Government did something sensible. They didn’t change the basics, people still get the food but they are now getting it in a MUCH better way. Now, each person entitled to the aid gets a smart card that they can use like a bank card in certain, selected stores. Their card is credited with the value of the food they’re entitled to receive and they can then spend it as they see fit. If they want rice rather than maize meal this month then they can make that choice. If they need vegetable oil rather than milk today then that’s their decision.

That’s perhaps the biggest change the new system has brought. Choice. Choice is almost always something available only to the more affluent sections of a community. Rarely are the poor given choices but this is an exception. For perhaps the first time the authorities are allowing people to take a little control over one of life’s essentials, the food we eat.

Of course it’s possible that some recipients of the aid will make poor choices. In theory they could spend everything on chocolate and magazines but that’s their choice. However I doubt that this will happen very often.

Naturally there have been teething problems, that’s the case with anything technological. Anyone reading the papers will have heard of the occasional store that has been trying to fool or exploit the system. However, and this is a big change, now the crooks can be identified. With the old system the theft and corruption was hidden, now it’s in the open. If I was a betting man I’d put money on there being truly massive savings because of this new system. That’s money that we can either save or spend on delivering aid to more needy people.

I think we should celebrate a rare occasion when modern technology has been used to genuinely benefit the people, not just to waste a whole lot of cash on technological toys to please little boys like me.

This week’s stars

• Priscilla and Lindy from FNB for excellent service.

The Voice - Dear Consumer's Voice

Dear Consumer’s Voice #1

There was an advert in a local newspaper, claiming to be to be from Transitions Abroad and is looking for workers offering salaries up to US$8,000 a month.

Going onto the website it looks like the website is a portal for work, volunteer and study abroad programs and not a job search service.

I find the advert suspicious for three reasons:

a) The e-mail address that looks suspicious is transitionabroad@gmail.com when the contact listed on the website use the domain @transistionabroad.com.

b) The two telephone numbers listed (with no contact names, or persons) are +27763519083 (South Africa) and +447023025996 (UK)

c) payment of a service fee upfront instead of after you land the job!

I'd like to ask Consumer Watchdog to possibly follow-up on the advert and confirm it is on behalf of Transitions Abroad). I fear some innocent Batswana looking for jobs under these economic conditions may lose their hard earned cash to yet another scam.

We need more people like this consumer. Clearly someone with a skeptical mind and who is willing to do a little detective work on behalf of other consumers. Few things give me as much pleasure as seeing people standing up for themselves and their neighbours. If we had a little more of this community skepticism our country would be an even better place.

Yes, this is a scam. Some months ago we saw an identical scam from a company claiming to be called “ITA Work and Travel” who were offering ridiculously high salaries to totally unqualified people in far-flung parts of the world. Recent graduates from UB were being offered senior Accountancy positions in the USA at staggering salaries. Most of the victims were offered jobs on cruise ships with similarly extravagant wages, opportunities to visit exotic places and even a “diplomatic passport”. Of course it was all a scam. The key piece of evidence was that you had to pay $350 up front. The second clue was that they claimed you had to get a US visa from the US Embassy in Pretoria, not from the embassy in Gaborone. When we saw one of these visas that had been emailed over to the victim by the crooks we could see instantly that it had been created on a computer. We also sent it over to the US Embassy here in Gaborone who also confirmed that it was a fake.

In fact this scam you mention sounds remarkably similar. The same up-front payment, the same unbelievable offer of employment, the same inconsistencies. Why would an organisation like this operate from a Gmail account and not, as you say, from their own domain?

Then we noticed something important. The South African phone number you saw in the advertisement. It’s exactly the same as the cellphone number used by ITA. It’s the same guy, the same fraudster, the same low-down, sneaky, scumbag crook as last time. If you feel like having some fun why don’t you spend a few thebe and send him a polite text message and let him know we’re onto him? Tell him that in Botswana we’re not quite as naïve as he hopes. Tell him what you think about him! Let’s see if we can take the battle back to him!

Success University update

My recent comments on Success University provoked a reaction. Someone claiming not to have any real interest himself in this pyramid scheme has now sent me a total of nearly 1,500 words explaining how they are the solution to almost all of life’s problems. He attempts to justify them calling themselves a university, repeats a whole lot of nonsense about how they empower, enrich and uplift us. Blah, blah, blah.

Anyway, there is news about Success University. This scheme (that’s still illegal in Namibia) which is supposedly committed to “success education” and giving people motivation has been taken over by another “network marketing company”, called Worldventure. Another educational scheme you think? No, they sell holidays. Everyone in the Success University network will now be selling holidays as well as mass-produced motivational materials.

I think this shows the real nature of these schemes. The product itself isn’t relevant. What matters to them is the selling mechanism itself. What they really want is a pyramid of people selling, the product isn’t really relevant.

Wouldn’t you think it strange if McDonalds bought BMW and they started selling burgers in their former car showrooms? It’s too bizarre to contemplate. I think the same goes for Worldventure taking over Success University. It tells us something about the nature of these schemes. They really don’t care about the product, they just want recruits.

Our advice remains the same. By the time you hear about one of these schemes it’s too late to join and make money. You’ll be so low down the food chain that you’ll just get eaten. Only the people at the very top, the creators of the scheme and the initial members will make any money.

Even Worldventures own figures show this to be true. They confess that in 2008 70.2% of their recruits made no money from the scheme. Of those that did make money, the median earnings were a pathetic $114.60. Then, hidden away in the small print it says:

“These figures do not represent Representatives’ profits; they do not consider expenses incurred by Representatives in the promotion of their business.”

So that $114.60 is before you have paid your expenses? Steer clear!

An email about Questnet

My response is below the email.

i am a student in Malaysia and i read your report online about Questnet being a scam. i'd say you are mis-informed.

Do you know what network marketing is??? do you know a company called Amway???
network marketing is an industry which has created the most millionaires of all the industries.

network marketing lets one to use time and money leveraging to create passive income! if Questnet was a scam, then the Ugandan government wouldnt be in it.

the islands of Papau New Genuia.

i'm surprised they let outrageous articles like the one you had to be published. Do you know what a pyramid scheme is?

If Questnet was a Pyramid scheme it wouldn't be in existence today! then Amway wouldn't be in existence today.

and the products are amazing. and they do work! the bio-disc, its helped with my asthma.

bio-disc is a new product in the market, just the time when people were introduced to the idea of the cellphone! everyone thought it was crazy, and today everyone has one.

'Nano technology'! go and research about it! is what is used to engineer this bio-disc and chi-pendant.
Please... do your research, Questnet International will grow in Southern Africa and you are gonna watch it do so.

People like you who dont know what they are talking about, write these reports. its been said that Questnet was a scam in every country its been a success. Iran is the biggest market in Questnet in the world, followed by Nigeria and then Malaysia, Tanzania, Kenya, to name a few. These are countries with very strict laws in which companies like these operate!

And i know you will join Questnet, it will be launched in Botswana soon enough! and you will see the ''SCAM''! unfold in your eyes... and please... keep writing about it... we appriciate the free publicity!

Mr Goh Seng Hong is my business partner.... i am a motswana, 20 years old! and i will be successfull.

I mean just look at the richest people in the world! not even half of them have degrees! network marketing is the future of the economic world!

research about it before you publish it!

thank you.

Thanks for the email.

• Misinformed? No.
• Do I know what network marketing is? Yes.
• Do I know a company called Amway? Yes, I met with their SA MD a year ago when I suggested that they were pyramid - structured. I stand by that. Look at the evidence from their UK court case on the real success of their IBOs.
• Network marketing has NOT "created the most millionaires of all the industries". Please provide evidence for this claim. Evidence that doesn't come from the networking marketing industry itself.
  
• The Ugandan Government is not "IN" QuestNet. Please provide evidence.
• You're "surprised they let outrageous articles like the one you had to be published". It's called freedom of speech. You have a right to believe in magical glass just as I have a right to say that lumps of glass can't cure disease.
  
• Yes, I know what a pyramid scheme is.
• The BioDisc is a piece of glass with no magical properties. It did not help your asthma. That was either a placebo effect or a coincidence. The manufacturers of the BioDisc issue a disclaimer that says "Amezcua hereby disclaims all warranties and conditions with regard to this product including all implied warranties and conditions of merchantability and fitness for a particular purpose". Even the people that make this lump of glass admit that it does nothing.
• I DID do my research. I also applied thought rather than superstition.
• "the richest people in the world! not even half of them have degrees". Then why are you studying in Malaysia?
• I did extensive research before writing what I've written about scams. I always do.
• "And i know you will join Questnet". That's just silly.
  

I stand by what I say.

Just out of interest, are you a Government-funded student? If so, does your placement allow you be in business while studying? I thought it required a full-time commitment?

This, along with your email will be posted on the Consumer Watchdog blog. I'll remove your name.

Ad hominem attacks rarely reinforce a successful argument.