Math Against Scammers

by Tony Clifton

I have a good news for these who think they've lost their youth in the school. What have you done in school? Either huning girls/boys or studying. Well, in the former case you've spent a good time. In the latter you should have gain some knowledge in Math, which will now help you to protect yourself from the scammers :-)

Sounds like a funny stuff, but the truth is that you can prove that some programs are ponzies with simple Math. Or you can calculate how long a program could be paying yet and thus your chance for making profits :-) Please remember however, than this is not universal and your calc won't save you from loosing money if you use only it. The key to the success in the HYIP world is in the combination between the aproaches. We are regulary posting scam-fighting "tutorials". If you don't want to be sucker, try to use them all.

Back to the topic. Here are few good application for the Math agains thiefs:

See when a program is lying. A great example of such kind of theft is Vascoinvestment.com. They claim to exists since 1998. This is 7 years. Here the standard Due Diligence can't prove them lying - not only that the domain is that old, but if you look with the wayback machine (web.archive.org) you will see an investment program exists on that site yet from year 2000. But the calculations will show you something doesn't tie up here.
They pay every working day. There are arround 250 work days in the year. 250x7years = 1750 days total. Lets imagine you invest just 1 buck yet at the first day and take the lowest paying plan (1.9% daily or 1.019 in absolute value). By the compounding formula:
$1 x (1.019 ^ 1750) = $201,753,933,749,757
Whoaaa. $201 millions millions of dollars. There is not so much money in the investment world.
Of course noone would compound all the time, but they also won't start with 1 investor with $1. The absurd figure just shows you that either they lie for their 7 years history or they have been paying much less before. So how are they able to pay 1.9% - 3.0% daily now? The history is not a proof that they can do it at this rate.

Althought a kind of a fiction this case shows you how you can prove that the program is impossible. The same very simple calculation can be used with new HYIPs as well. I won't even mention these who pay 10% daily or so. But let's see any program which offers 1% daily compounding for "life time" - there are tons of them. Do you think 1% daily compounding is real

istic? Let's see how much you should have in 2010 if you invest just $1 today:
$1 x (1.01^1840) = $89,397,991.
And this with only $1. What if you invest 1k? Impossible. In only 5 years. Still not convinienced? Then add 3 years and you will receive more money than there are in the world.
Obviously they will either:
- close down earlier
- lower the rates
- stop the compounding.

see how long is it going to live
Let's choose some random HYIP which offers stats from the monitors. Here is an example: http://www.oceaniahyip.com.
Running days 92
Active accounts 119
Total deposited $ 34,130.95
Total withdraw $ 15,934.19

So in average we have: 1.3 accounts per day and $370 invested, so $285 average per investor per day. If this trend keeps going with the same speed, a month later they'll have 131 accounts
with $45,245 invested (expecting 30x1.3 = 39 new investors with $285 each = $11,115) . But these 131 accoutns will be earning minimum $8 per day. Before that in this month they would have earned average another $27,600. Add to that $15,934 withdrawn and you will see that after a month this HYIP most probably won't be here.

Of course this calculation is done with too many assumptions for keeping the averages. If the trend will be kept ot not, depends on many other factors. More on that in our further articles. Until then you can use Math to get approximates. If all of this looks too complicated, you can simply read our 5 fast reviews in each issue :-)

Published at Dec, 19 '05 , Read 589 times.

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