Ebay Matrix Scam

Ebay is a new hot spot to swindle consumers out of cash. With so many people turning to Ebay in order to get great deals on electronics such as iPods, scammers have taken note and pounced on the money maker.

Be careful when searching for your new iPod on eBay or even Craigslist, as Matrix scams, a scam very similar to the popular and illegal pyramid scams are on the loose.

In this scam, a simple search for iPod listings on Ebay will turn up great deals such as $30 or $40 for an iPod that would usually cost much more than that, even on Ebay. However, instead of leading the hopeful buyer to a bidding area, as most Ebay sales will, the posting will link the person to another website that claims to give away free iPods with the purchase of a book, CD or some other small purchase.

In reality, this scam works because the consumer believes they will get more than what they thought they would have gotten in the first place, for a lot less. In the beginning, the consumer might even receive their iPod and additional product, but as time goes on, this scam will fail.

Ultimately, the scammer has the person sign up for the product, and then promises the iPod as soon as other people sign up and buy more products. Thus, names are put in a list and shuffled out as they reach the top-where they will actually get the iPod and additional product. However, as there will never be enough people to keep this going, the later consumers are out some money and will never receive their products. They will just be stuck in a long line of people hoping to receive something too good to be true.

Read more about the Ebay Matrix scam from Wired.