Virtual currency scams.

Looks like the media finally wakes up to the fact that much of the social gaming/virtual currency is in fact a complete scam.   Its been a open secret for at least the last 3 years,  that no one ever questioned any of this is absolutely amazing.

A lot of the networks promoting these offers are nothing but a smoke screen and if you dig deep enough you will see many of the people/companies pushing the offers are facing multiple lawsuits in many states.    The top people/companies in these scams are pulling in revenues of over a million dollars a day.   Should be interesting to see just how much of an effect this will have on facebooks revenues.

29 Responses to “Virtual currency scams.”

  1. Two Companies That Said No To Social Media Scams Says:

    [...] And PlentyOfFish founder Markus Frind talks about being pitched by companies like Offerpal and SuperRewards. He also follows up with a post on his own blog. [...]

  2. Mash123 » Two Companies That Said No To Social Media Scams Says:

    [...] and SuperRewards. H&#101&#32&#97lso follows up with a post on his own blog. [...]

  3. Olivier Says:

    Please, don’t put all social games using virtual currency in the same bag… There are a lot of social game editors outside the offers+facebook ecosystem Mike describes, and most of them use traditional payment gateways (credit card, sms, prepaid card, etc.) to monetize, I mean they build sustainable businesses without misleading their users :)

  4. dennis yu Says:

    I predict only a minor impact to Facebook’s revenues, since most of those earnings are accruing to the app developers and networks. The regular Facebook ads on the right side are a bigger issue in what Facebook will allow for online dating. There are some sketchy practices Facebook allows there right now– hurting legitimate free sites like plentyoffish.com.

    Alex Schultz, whom you had dinner with, is fully aware of what’s going on, but there are SO MANY other parties at Facebook, each with different interests, that it’s going to take some serious alignment to put some policy in place.

  5. Two Companies That Said No To Social Media Scams - Tech News Says:

    [...] And PlentyOfFish founder Markus Frind talks about being pitched by companies like Offerpal and SuperRewards. He also follows up with a post on his own blog. [...]

  6. TraderBots Says:

    Every time I see one of these offers, I usually recognize them.

    Then I associate the site with them, and I feel the site itself is sketchy. Who knows what they’ll allow in their ecosystem next. Ads that use exploits to hack your computer (which has happened on a reputable site, but by accident I imagine. hasn’t happened again).

    Without a focus on quality, i’ll never visit those sites again, or ever hand over my credit card.

    A lost user for life.

    http://www.traderbots.com

  7. Cristian Says:

    The concept of awarding points for surveys and other types of affiliate offers isn’t bad or unethical business in principle. It has clearly been exploited by many reward-offer companies through what I called “advert-scams” in a recent post about dissecting the success of social gaming companies: http://digitalpopuli.com/social-gaming/dissecting-the-success-of-social-gaming/

    To the same degree that third-party apps are vetted by Facebook, so should the “fourth-party” services who currently piggy-back their way in through gaming and other apps.

  8. Markus Says:

    Dennis direct revenue maybe not, but many companies make a fortune of scams and than use that money to bring in more users via facebook.

    Its the type of offers and how they are promoting them that is the problem. Check out http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=95040

    Basically anything that has the word mobile in it is a complete scam.

  9. Two Companies That Said No To Social Media Scams | Tech stuff center Says:

    [...] &#65nd Plent&#121O&#102Fish found&#101r &#77ark&#117s &#70r&#105nd tal&#107s a&#98out bein&#103 pitched by compa&#110ies like Offe&#114pal a&#110&#100 S&#117pe&#114Rewa&#114&#100s. He also follows &#117p with a post on his own b&#108og. [...]

  10. Art, Entertainment, Ethics and Exploitation | Ditchwalk Says:

    [...] on gaming abuses here, here and here on social media abuses (or pioneering marketing initiatives) courtesy JurieOnGames. (At the very [...]

  11. Two Companies That Said No To Social Media Scams | AtBlogs Says:

    [...] And PlentyOfFish founder Markus Frind talks about being pitched by companies like Offerpal and SuperRewards. He also follows up with a post on his own blog. [...]

  12. nustik Says:

    dennis yu probably knows this and is playing dumb. markus is absolutely right. buy users through normal facebook advertising, make money on them when they take offers.

    it’s called arbitrage.

  13. Two Companies That Said No To Social Media Scams | info4guide Says:

    [...] And PlentyOfFish founder Markus Frind talks about being pitched by companies like Offerpal and SuperRewards. He also follows up with a post on his own blog. [...]

  14. A week of digital life November 4th | The Juicy Cow Says:

    [...] Shared Virtual currency scams.. [...]

  15. Codes ès croqués » Blog Archive » Le scandale des arnaques aux jeux en réseaux sociaux fait rage : MySpace et Zynga réagissent Says:

    [...] Markus Frind, le fondateur de PlentyOfFish (sorte de Meetic américain), a abordé le sujet avant hier sur son blog. [...]

  16. Annardh Says:

    Dear Mr Markus i am very unhappy that my profile info at POF was given to another site called NETLOG.com
    I heard the same thing from other POF users
    I dont understand why a person like your self who makes 10 000 $ a day from POF is risking his reputation using this kinds of cheap techniques.
    You could probably own NETLOG but this is something that will cost you a lot in a long way term.

  17. Pick Up Girls Says:

    Facebook ad revenue will not suffer.
    Maybe a short term hit but they continue to add vast amounts of users each day so i see no problems for them

  18. Emma Says:

    Avoid any of these so called ‘mobile’ deals, they are invariably a scam!

  19. POF Says:

    Funny how the owner of this blog is one of the biggest hypocrites

    plenty of fish dot com is one of the biggest scam sites out there. All the advertising is all the owner was worried about with all the fake profiles and everything else, quality of the actual members and service didn’t matter ultimately- clicks on the ad banners did.

    What amuses me now is there is a ‘serious member’ function to where one has to pay. Very funny isn’t it?

    POF sucks- don’t waste your time.
    Free sites are just that- free and a waste of time.

    PS: Markus would stay on top of such scam warnings, how else do you think he stays one step ahead in the scam game? ;)

    Read between the lines people… POF sucks invest your money in a quality service POF is not.

  20. Fish Killer Says:

    Hey Marcus what are you doing about the serial killer on your fish site that has been killing women. How is it that its not all over the place yet. Your system sucks and it can not stay free forever. You will be forced to charge a fee to stop these maniacs from killing again. I recommend a paid service. Marcus is only init for the money the ads provide for him. I have met marcus in person years back and he really needs to do something before he finds himself in a bad place.

  21. valuta árfolyam Says:

    online communities to disrupt the oppressive status quo at conventional institutions
    information wants to be free(sic), organizations want to influence us.

  22. Shawn Sears Says:

    Scam is a growing problem in online industries. Good discussion here.

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