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Arbitrage Scams

Arbitrage betting is web based opportunity for people to make extra money or even solid income. Unfortunately, various individuals and companies, mostly from Australia, use this opportunity to promote their scams. If you get involved with them and give them your money, you will surely lose it. Here we will explain common arbitrage scam types that are being operated on different websites. This information will help you recognize arbitrage scam websites if they ever come across your way. At the moment, there are three types of scams: arbitrage companies that enable auto-betting with your capital, sports arbitrage trading Ponzi schemes and companies that sell arbitrage software for large one time fee.

Automated arbitrage betting with your capital

This is the latest type of arbitrage scam that allures people who are interested in arbitrage trading but don't have necessary 5 to 10 hours a week to do the trading themselves. These companies claim that they have developed special software that will automatically bet with your capital and bring you huge monthly returns. Unfortunately, the software that can completely automate arbitrage betting does not exist. Arbitrage program can automate a great deal of trading process: calculate arbitrage profit and individual bets, provide you links to online bookmakers that are involved in arbitrage opportunity and even keep track of your account balances, but it shouldn't place bets instead of you.

Arbitrage trading Ponzi schemes

Ponzi scams that involve arbitrage betting usually appear in the form of sports arbitrage funds or HYIPs (high yield investment programs). These companies persuade you that their personnel will trade with your money in your behalf. As well as other Ponzi scams, they will look very appealing since they promise incredibly large monthly returns and they even suggest you start by investing smaller amount of capital. After you invest, you will receive back some interest on your start capital. This is done simply to gain your trust and persuade you to invest more money before they disappear with everything you gave them.

Arbitrage software sold for large one time fee

Some scam companies employ the following strategy. They sell arbitrage software for large one time fee, usually $5,000 and more. In addition, they use high-pressure sales tactics, do not offer any kind of free trial and of course promise impossible monthly returns. After you buy the software, you realize that it doesn't deliver the promised number of arbs, monthly return or even worse, that it doesn't work at all. So you ask for refund since the software will never pay out its price. Then the company states its no refunds policy or they simply ignore your request. Respectable arbitrage companies run subscription services which actually yield them more profit in long term if they offer quality service or software. The subscription service also allows you to cancel it at any time if you stop arbing or the service deteriorates.

When you decide to invest in sports arbitrage fund or buy arbitrage software, you should follow the basic principles for avoiding all scams. Every company or website that uses high-pressure sales tactics, promises tremendous monthly returns and does not offer free trial or does not have clear refund policy should be avoided. Just ask yourself; if the company has such huge returns, why do they need your money?

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