Cash Gifting On the Internet
Tags: Cash Gifting, cash gifting is illegal, online recruits for Cash Gifting, pyramid scheme, the IRS
Posted by momscashblog on June 12th, 2008Cash Gifting is all over the internet. I’m sure it’s even up on my Google ads as you read this… (but that’s their doing. If I had control of it, I wouldn’t choose Cash Gifting as an ad for my site). On YouTube there’s loads of videos with someone opening FedEx mailers full of money. We’re supposed to take that as “proof positive” that Cash Gifting works??? NOT!
I could go to the bank and take out $1,500 or $3,500 in hundred dollar bills, put them in a FedEx mailer, seal it, and send it to myself from another city or state… or have a friend send it to me. Or just write stuff on it and say it came in the mail. A video of someone opening a FedEx mailer full of money is the same as showing bank statements online. It means nothing… it’s just a visual, but some people can be easily convinced by a visual on the internet.
Most people know it’s a pyramid scheme and aside from being illegal, someone always breaks the chain because they can’t come up with the money. There are never enough ”recruits” to sustain the pyramid. When that happens, it all falls apart. People lose money, and some go to jail. This scheme will last longer than most do because of the internet. There are more people to recruit on the web, so if one doesn’t come up with the money, there’s always more online recruits for Cash Gifting. On the other hand, the internet makes it so much easier to scam people. They don’t know you, and they don’t care about you.
There are hundreds, maybe thousands of groups popping up everywhere and not all are legitimate. (well, it’s already illegal, so it really isn’t legitimate anyways!) You could get into a cash gifting group that is a total scam and they’ll just take your money and run. If that happens, there’s no recourse because cash gifting is illegal.
I saw quite a few videos that claimed the “IRS doesn’t require taxes on gifts of $10,000 from each person.” That is true. I’ve given gifts to my neices and nephews, and I’ve had gifts of money given to me by family members as a way to lessen their tax bills. But the IRS doesn’t just let you take or give that money without checking everything out. When you get or give a “gift” at tax time, the IRS questions you and your relationship to the other person. They ask both parties why it was given. I’d hate to have to explain to the IRS why a total stranger gave me a cash gift. You don’t want to fool around with the IRS. There are many good people in jail because they tried to trick the IRS.
As we speak, Federal investigators are scouring thru as many internet Cash Gifting programs as they can and people will go to jail. Those who do are usually the ones who started the programs, or ones on the top levels, but I wouldn’t want to take any chances.
If you have made money with Cash Gifting, then you’re one of the lucky ones. I can see where the internet could keep a pyramid scheme going longer than they used to, but I wouldn’t take my chances on it.
Thursday, June 12th, 2008 at 4:04 pm
Nice article. Cash gifting is mostly a scam. Those who get money are either lucky or good at scamming. On internet every money making or information seems right to other. Its like if I give a good advice to my friend than he will not take it but if he see that same advice on internet he will accept it. This the power of internet or may we say dependence on internet.
Thursday, June 12th, 2008 at 8:06 pm
There are many things that wouldn’t fly without the net. Your doing a bang up job. Others are jealous of you, that’s how you know!
Friday, June 13th, 2008 at 4:29 pm
I still don’t really know what cash gifting is. I think you are right it might be a scam.
Friday, June 13th, 2008 at 9:23 pm
Hello!…… testing
Friday, June 13th, 2008 at 10:14 pm
People need to know HOW ILLEGAL THIS IS! My cousin was busted a week ago for gifting. One of the contacts she called from the list was an FBI agent. It was a sting. They came to her house and confiscated her computer and all paperwork in the home, business and personal from her husband and children too. She is scared to death and cries all the time. Her bank accounts have been ON HOLD ever since. She has no money for a lawyer now. They told her it is “Mail Fraud so far” and they don’t know what will come next. It is not just IRS trouble people should worry about but this is good information that is not being told. Tell them not to do ANY cash gifting.
Saturday, June 14th, 2008 at 12:08 am
I have just started looking into gifting. I don’t understand why it is illegal to give away money to whomever you choose. People give $ to organizations, charities, etc. all the time. There is a Millionaire that walks the streets of NY handing out $100 bills. Isn’t this gifting and does he know the recipients, NO! The Govt. is not happpy unless they have control over everything and collect their money. So I guess to make it legal you should give the recipient something in exchange for their gift amount, so it is not considered a gift.
Sunday, June 15th, 2008 at 3:44 am
I haven’t really looked into how cash gifting works but I would assume it’s not the actual gifting that’s illegal, it’s the tricking people into involving themselves in the scam with the hopes of profiting that they see as fraud.
Monday, June 16th, 2008 at 4:40 am
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Wednesday, June 18th, 2008 at 11:18 pm
Hi Agent 101… you’re right. Sometimes people think anything in “print” has to be true. (nice to meet you.. I love checking out blogs from people of other countries!)
John… not sure what you mean, but thanks for the compliment.
Britney… it’s not that easy to explain, but if you feel anything’s a scam go with your instincts and don’t do it.
Wednesday, June 18th, 2008 at 11:30 pm
David… sorry to hear that happened. It’s true that the IRS isn’t the only worry. Like Stak said in #7 they really want the ones who start these things, not the little guy, so maybe they are trying to scare her. Hope it all turns out OK.
Duncan… Maybe give the recipient a keychain. LOL
Hi Stak… you are right again.
Brent.. thank you for telling me that. Good to know. (but I’d like to know HOW.
)
Wednesday, August 27th, 2008 at 4:20 pm
Hello Agent 101,
I do respect your opinion, but I must disagree with you. Cash gifting is a great way to help others while helping yourself. This practice has been done for many years in other cultures with not only cash but land and livestock. It’s not like a pyramid scheme where only the top benefits. Gifting is linear where everyone gains equally.
Best Wishes
Monday, October 6th, 2008 at 4:08 pm
If the cash gifting is linear, not a pyramid, and there is no deception regarding what is actually happening, is it still illegal? I am just looking into this for the first time. I can see how some are scams, the pyramid scheme ones for sure. How is this mail fraud?
Thanks
Wednesday, October 8th, 2008 at 12:05 am
Rick… Hi there.. Cash gifting is considered a “scheme” and is illegal because you are giving and getting money without getting/giving a service or product… and because the government has no way to keep track of the money you are getting, which of course they want to know about for tax purposes. (everyone is supposed to report earnings and pay taxes on those earnings…) So since it’s illegal and done thru the mail, the government will charge someone with “mail fraud” if they can catch them… and mail fraud is no small crime!! it’s a federal crime and people DO go to jail for it… then it gets tied in with IRS crimes.