Friday, February 10, 2006

Word Spreads About 12DailyPro vs. StormPay

As more news agencies start to report on the problems at 12DailyPro and StormPay, more attention is being focused on the auto-surfing "industry" at a whole. Although, reports have been limiting to only several local news stations so far, it seems that law enforcement is also catching up to this new trend and with more attention on auto-surfing and HYIPs, the more likely it is that fraudulent actions by it's operators and users will start to come to the surface.

So far, only several local affiliate news stations have reported on the ongoing story of the struggle between StormPay and 12DP but all have reported that each of them was being looked into by consumer advocacy groups and law enforcement. This is a bad sign for people who were using these systems to supplement their income (or even to use it entirely for income). The operators of other auto-surfs and HYIPs are also surely also disappointed to the negative publicity caused by this, as well as the lack of an easy to use payment processor that was known to look the other way to MLM based companies.

The problem also highlights a serious problem in consumer naivety to trust a companies claims and how investment programs work and how much they can expect to get in return from a legitimate investment. It also shows a lack of policing of these companies by any major government regulatory body. The fact is, as reported in on my last post on 12DP is that auto-surf scripts and companies to host them are a dime a dozen. What's happening now with HYIPs is very similar to what happened in the past with free gift sites. Many individuals were able to purchase scripts that allowed them to host sites that offered to give people free gifts for completing an offer online and referring a certain number of people to do the same. The writers of the scripts and the companies that hosted the sites made money off of it, and in turn, the operators of the sites made money through affiliates when users signed up and completed an offer to get the free gift. In the end, the free site crash occurred when many of the free sites were kicked off by their affiliate companies who were paying them to have their members complete offers. Some site operators walked away with money, and some lost most of it. The writers of the scripts and web site operators also kept the money and in the end, consumers were left having paid for many offers and not receiving their gifts. No regulatory action was ever taken, to my knowledge, against any of these site operators who promised free gifts and never delivered them.

So, will this same thing happen to auto-surf sites? Time will tell. However, one this that is known is that this time law enforcement and consumer groups are looking into the matter seriously. With the possible amounts of money that was exchanged between users of 12DailyPro reaching into millions of dollars, the potential for serious charges for the operators and even users who promoted it could be high if investigations find that there was fraudulent activity involved.

Watch the report by Savannah Georgia news affiliate, WTOC, below.

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