Sports Arbitrage Betting
Sports Arbitrage Betting Fraud: How It Works
The sports arbitrage betting is the new online toy that adrenaline rush lovers and risk takers are playing with these days. However, if you're looking for the best bookmakers for arbitrage as well, be aware of the latest scam, exposed below. Just keep in mind that the sports betting arbitrage calculator's magic is in your hands, not others'. Feel free to expose names of questionable bookmakers in the Comments section at the bottom of this article.
Let's start. In this article you will learn how the scam works, how to avoid it, and how to report it. How does the scam work?
Watch the video below to see one variation of the Sports Arbitrage Betting Scam exposed:
The number of gamblers worldwide marked a significant increase with the advancement of the technology over the last decade. Only in the US, UK, Canada and Australia, the gambling industry is breaking over $100 billion/year together.
The sports arbitrage betting scams often come as websites/companies advertising this service: placing an automatic bet on your behalf, whenever the odds of a game vary on different betting websites. The sports arbitrage specialists require an initial registration fee and 25% of your winnings (which are guaranteed, right?).
You will never hear from them again, once you have paid your registration fee, losing all of the money you gave them. However, that's not all.
Let's get into detail, shall we?
What Is Arbitrage Betting Fraud?
Here is how the Government of Western Australia explains the scam, for the whole world:
"Criminals tell their targets that they are one of a tiny number of people selected for a special membership of a betting scheme or to purchase a licence for software. This will enable them to predict outcomes of events, horse races or stock market movement.
Typically the promotion of the scheme is tempting and can include professionally-produced DVDs, booklets, fake testimonials and graphics which appear to explain how you'll make those high returns."
Best Bookmakers For Arbitrage? You And Your Hard Work!
The description continues: "The theory of arbitrage betting is simple: it is based on placing a bet on both or all participants in an sporting event and anticipating a return greater than the outlay. For instance, scheme operators claim that by betting with various bookies on both teams in a game, or all the horses in a race, the cash will be won regardless of the outcome.
There is a 'money-back guarantee' in case the victim doesn't make any money but the catch is that they can't make a refund claim. Most of the times the company is not reachable anymore.
Some stories include people paying high entry fees only to find later that no bets were placed on their behalf. The money has disappeared or they were not being able to access their account balance until the initial investment amount doubled, which never happened."
If you strongly believe in the concept of sports betting arbitrage, it's best to do it yourself.
Sports Betting Arbitrage Calculators: Fake Promises
On the other hand, the Australian Competition and Consumer Commission adds to the explanation:
"Sports arbitrage scammers attract victims by promising a risk free profit. They guarantee amazing returns for little to no risk. They claim that the cash made on the scheme will 'compound', which means increases over time to provide larger returns. The sports betting arbitrage calculators they use apparently never fail.
Participants (victims) are required to pay high entry fees and ongoing fees to be part of the scheme. However, it is highly unlikely that the 'guaranteed' high returns from these schemes will lead to the expected results.
These schemes take the form of a 'syndicate' into which victims are asked to pay cash, the betting then being conducted by the scammer on behalf of the group.
In a different variation of the scam, the company offers to sell the victims computer software that promises to find arbitrage opportunities. Either way, arbitrage schemes typically involve a large, up-front payment as well as ongoing fees.
These schemes are promoted by 'cold calling', meaning unexpected or unsolicited calls that offer you a chance to participate in the arbitrage scheme. Crooks will lure you into joining by claiming that the arbitrage scheme uses similar techniques used by huge financial institutions or the lucrative techniques of professional traders."
How is that for an explanation?
Sports Arbitrage Betting Scam: How To Avoid
Before you pay, you should ask yourself: If the winning is guaranteed why don't they just do the betting themselves, with their own money?
Typically, red flags should be up when:
a) Bettors are unable to withdraw their winnings until particular conditions are met. Say you open an account with the scheme at $3,000, but cannot withdraw your cash until it reaches $6,000.
b) Receive unsolicited offers to join an 'investment' opportunity that sounds way too good.
c) Bettors receive many reasons that explain why the scheme is not working as advertised.
d) Bettors have difficulties in contacting the website/company.
According to Wikipedia, "Due to the large number of accounts that have to be managed after creation (which include personal details: name, address, email, ewallet, credit card information and most of the times even a copy of the bettor's driver's license or passport), arbitrage traders are susceptible to cyber fraud, such as bank account theft.
Making deposits is made easy and quick, however making withdrawals requires proof of identity such as driver license/passport, copies of which need to be shared with the bookies through email, fax or even regular mail, which causes additional huge identity theft risks.
Traders are often lured into high odds comparison sites that yield high percentage profits per stake (5-30%); this is used by hackers to attract a big number of arbitrage bettors that then place huge sums of money on these offers, only to lose all plus even entire savings in bank accounts to untrustworthy websites, which further use the personal data to sell it to criminals."
Sports Arbitrage Betting Fraud: How To Report
Let your family and friends know about this scam by sharing it on social media on this page. You can also officially report the scammers to the Federal Trade Commission using the link below:
How To Stay Away From Sports Betting Arbitrage Scams
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