These scams are a form of gambling made to look like real investments. Most do not work as promised and buyers cannot get their money back. There are different versions of this scam.
Computer prediction software
The scammer sells you a software program to predict sporting results promising high returns.
The information used to make the predictions can be found in the betting pages of your local newspaper at very little cost.
The scammer asks you to become a member of a betting syndicate for a joining fee (often over $15 000). You are 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, but the scammer simply steals your money.
These scams are promoted as business opportunities or investments at trade fairs, shows or via the internet.
The scammer uses 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.