Don’t fall for the tricks
Getting a “sure thing” or a system that claims to be able to accurately predict sports or horse racing might sound amazing but the old saying if sounds too good to be true it normally is definitely applies to betting scams. I have listed the betting scams that have previously been targeting Australians with links to articles to make sure you do not get caught by a scammer.
Scamwatch.gov.au reports that midway through 2018 $2,382,860 was lost in betting and sports investment scams from only 151 people with most being contacted via telemarketing. Compared to the $1,750,033 for all of 2017
Before handing over any of your hard-earned money my advice is do your research check out
Scamwatch.gov.au
Or
Look around on google, check out forums to see if anyone is talking about the product offered
What to look out for
Promises of large returns – quite often they will say they will over returns way better than what the banks or the stock market can offer
Unrealistic Win percentages– yes there can be winning sports bettors but people that professionally bet on sport would be aiming to get 55%. So, if you see someone offering tips with a 70% win rate there is cause for concern
Limited Spaces or Time Available – this causes urgency and is a crucial way to get you to spend your cash without doing the proper research
You’re approached to invest in a money-making opportunity to make risk free profit
Fake Betslips and screenshots
With google chromes inspect tool it is easy to change bet slips to make it look like a scammer is a big winner, so screenshots of bet slips and even very convincing videos should be looked at with caution.
With inspect elements on a page can be changed, they can change a losing bet into a winning bet, a $1 bet into a $1000 bet or the odds offered.
Fake testimonials
These are rife throughout the internet and designed to make you feel comfortable that the product or service is right to purchase.
They will just find a random photo of someone and write answers to the questions that you may have to put you at ease.
Even video testimonials are not safe with websites like fiverr.com where a scammer could get someone to do a video testimonial for only a couple dollars.
Betting syndicates
These can be very convincing and in turn mean huge losses for people that buy into the syndicates.
According to scamwatch.gov.au
“The scammer will try and convince you to become a member of a betting syndicate. You will need to pay a compulsory fee (often in excess of $15 000) to join and open a sports betting account. You will be required to make ongoing deposits to maintain the balance of the account.
The scammer tells you that they will use funds in the account to place bets on behalf of the syndicate. You, and other ‘syndicate members’ are promised a percentage of the profits.”
They will get you to place large bets on events that are unlikely to happen and the lay it off on Betfair or similar. Or alternatively they will ask to get access to your accounts so that they can place the bets on your behalf without you having to do anything.
The ‘thieves’ will try to convince you that they have insider information or something similar that they can give the guaranteed returns they just need your money to maximise the profits for the syndicate.
Edge punting club: From the Vlahos betting scam Facebook page
Sports investments
Scamwatch states
“The scammer targets small business operators, professionals, retirees or others with funds to ‘invest’. These schemes are usually promoted as business opportunities or investments at trade fairs, shows or via the internet. People may also be contacted via an unsolicited phone call, email or letter.
The scammer will use technical or financial terms such as ‘sports arbitrage’,’ sports betting’, ‘sports wagering’, ‘sports tipping’ or ‘sports trading’ to make these scams look like legitimate investments.
Promotional material often takes the form of glossy and sophisticated brochures or websites that contain graphs or diagrams promising large returns for little or no effort.
The scammer may also claim that their company is registered with the Australian Securities and Investments Commission (ASIC). “
These can be run in Ponzi scheme structure by paying out small amounts of “profit” to get the ‘investors’ to get more friends and family involved.
The scammer will continue to try fleece you out of your money by offering you an upgrade to a better system with higher return.
Computer predicting software
Scamwatch states
“The scammer will try to sell you a software program that promises to accurately predict sporting results, usually of team sports or horse racing. They will promise high returns or profits as a result of the program’s use.
Team sports betting programs claim to identify opportunities based on historical trends and the different odds offered by various bookmakers. Horse racing software will often claim that predictions are based on weather conditions, the state of the horse, the draw, or the condition of the jockey. They may also claim to track the money that has been placed on a race by professional betters.
Often the information used in these programs can be obtained from the betting pages of your local newspaper at very little cost.”
I have found many of these promoted on the internet, but none at the huge cost that some of these scams reportedly charge for their software. Statistics obviously does play a large part in sports betting and is vital to ending up profitable.
If there is statistical software out there to help that charges, make sure to do your research. Reputable companies should have a x day trial period or charge smaller monthly charges. No software can give the returns that make a $15,000 purchase worth it.
Most sports have options to get key statistical data that is relevant to that sport and is free. These are either run by the league itself or websites that make money in alternative ways like ad revenue.
Edge punting club: Taken from Herald Sun
Paid “guaranteed” winning system
This is one that I unfortunately can admit got sucked in for and to be honest looking back on it I cannot believe that I paid for this ‘system’. But I was young and dumb, I thought I had just found an easy way to make some money on the side after just leaving school and was short on spending money.
It was a sports betting system by John Morrison.
I am happy to say that I have never been sucked in again and fortunately for me, did not lose a large amount of money.
It was offering a huge win rate that could not be achieved. I paid an initial $97 for the system and luckily did not follow the ‘tips’ that were given to me following purchase. After only doing 2 bets as he was reporting different information and I started to smell a rat.
He wanted me to sign up for one specific website, that was not Australian based because it offered the ability to buy handicapping points to make the bets following his system.
Another flaw in this ‘system’ is that it was in-part a progressive betting system, which meant that if you lost one bet you would then make a larger bet to recoup your loses plus make a profit. The flaw in this is because you should place bets based on your ‘edge’ so unless your edge has not increased you should NOT increase your bets.
I was extremely lucky to have come out only losing a few hundred dollars but I could have been a lot worse.
What they sold me on
- 98% Win rate tested over years with graphs to prove it
- Simple to do
- Large money
- Had a limited time before price increased
- Money back guarantee
Warning Signs
- 98% is not achievable
- I did no research
- Plenty of people saying it was a scam online
- Created urgency
- Later found that it was a high selling product on the affiliate site Clickbank so he was paying very large commissions to people who referred others and this is why there was so many positive articles etc out there.
The multi tip email scheme
I found this out from a video from betangel’s Peter webb on Youtube
This is simple for a scammer to attempt and that is why it can be so successful
First the scammer gets a large email address base
They send out a ‘tip’ that has a 50-50 chance to say 10,000 people
Except they send 5,000 people a tip that team A wins and the other 5,000 people get told team B
Event happens so 5,000 people have received a winning tip
The same process gets repeated with the 5,000 winners, 2,500 team A, 2,500 Team B
And again 1,250 team A, 1,250 Team B
They will continue this process until you sign up. By the 5th winning tip in a row its impossible for anyone reading to not be intrigued.
This is when the time comes for the scammer to get their money. They will either ask for payment before getting the next tip or may ask for a yearly fee and with the recipient getting 5 tips in a row they may be willing to part with big money compared to just paying for random tips.
People promising inside information or fixed events
First of all, this is illegal and you risk getting yourself in serious trouble just to make some quick money
Secondly if a match has been fixed there is a risk that it can be found out and if this happens then your bet will not be paid out
And
Thirdly they might not have any of this information and are just gaining your trust for other reasons
This has been increasing promoted on Facebook, but there are also groups designed to show these scammers and let others know not to get involved.
Recent Scam Examples
EDGE PUNTING CLUB
– over 1500 victims
– ran like a Ponzi scheme
Photos from the herald sun and bill Vlahos punting club fraud
“The organiser of a Victorian punters’ club charged with defrauding syndicate members of $128 million also allegedly attempted to destroy evidence when the accusations came to light.
Bill Vlahos faced the Melbourne Magistrates Court on Wednesday morning on 374 charges connected to The Edge punting club, which collapsed in December 2013.”
Freedom connect and leading edge strategic group
-1.2million was scammed with 1 victim losing a total of $300,000
-between 2013-2015
-found and charged late in 2017
$10 million scam in southeast Queensland 2016
-one victim lost #790,000
-used high pressure selling tactics and promised high returns of over 15%
-got people involved through cold calling
Laybet
Police extradited the 51-year-old man on Thursday for his alleged involvement in cold call investment companies Accord Professionals Group Pty Ltd, Voss Capital Management Pty Ltd, LayBet Professionals, Charterhurst Agencies Pty Ltd and Parkview Corporate Services Pty Ltd.
– $6million scammed
– was selling predicting software
– caught early 2017
http://aussiescamalert.com/tag/lay-betting-scam/
While researching this topic I also found a Youtube video from Laybet and although just from this I was not convinced I can see how just seeing one video can get people intrigued.
If you are scammed
Report it to the ACCC’s scamwatch.gov.au
Warn people that this scam is out there – post on Facebook, post on message boards.
Don’t be ashamed to tell people. The more people complaining about a scam the more likely you can prevent someone else from falling into the same trap.
Have you heard of any other types of scams or major betting scams in Australia? Let me know in the comments so I can add to the article and let more people know.
