Is Kindred Hearts Gifting a Scam?

  • Comments 3
  • OTA 5,112
  • Like 1
Is Kindred Hearts Gifting a Scam?

Gifting clubs are illegal pyramid schemes where new club members typically give cash “gifts” to the highest-ranking members. If you get more people to join, they promise you will rise to the highest level and receive a gift much larger than your original investment. But only a few people profit from this scheme and most people lose their investment.

Organizers keep creating new names for gifting clubs, such as “Friends Helping Friends,” “Women Empowering Women,” “Airplane,” and “Pit Stop,” but these clubs all work the same way and are all illegal. If someone asks you to join a gifting club, don’t fall for their high-pressure sales tactics or stories of great earnings.

Watch out for false claims like these:

Claim: This program is legal.

Fact: Gifting clubs are criminal enterprises. Organizers are guilty of a felony, and participants are guilty of a misdemeanor.

Claim: According to the IRS this is legitimate, because the law allows you to give someone up to $13,000 each year without a tax consequence.

Fact: Gifting clubs are not approved by the IRS.

Claim: The money paid to join is a gift.

Fact: A legitimate gift has no strings attached and is not an investment. Signing a statement that you expect nothing in return does not change the situation, and neither does calling the entry fee a “loan.”

Claim: This has been endorsed by the Attorney General.

Fact: The Attorney General does not endorse any business or investment plan.

Claim: Much of the money is donated to charity.

Fact: Even if the money is donated to charity, this does not make the program legitimate.

Claim: Prominent people are participating in this.

Fact: The people named probably are not participating.

Claim: This program isn’t a pyramid; it’s a circle with money flowing between the members.

Fact: Gifting clubs all meet the definition of an illegal pyramid scheme despite jargon that may be used to disguise the true nature of the program.

Claim: No laws are broken if your gift is in cash and not sent through the US mail service.

Fact: Organizers prefer receiving cash because it is difficult to trace, not because it makes their scheme legal.

Claim: Investing in this program helps create prosperity in the community.

Fact: No new wealth is created by gifting clubs. Money invested at the lower levels simply goes to the person at the highest level. The only way for participants to recover their money is to bring new people into the scheme. When the scheme shuts down, the last people to pay lose all of their money.

Bookmark articleSave
Was this question and answer helpful?
  • Like (1)
  •       
  • Dislike (1)   
Comments, Questions, Answers, or Reviews
To protect your privacy, please remove sensitive or identifiable information from your comments, questions, or reviews. Please keep conversations courteous and on-topic.

Write commentWrite your answer or view the ones below.

Comments(Total: 3)

0
September 12, 2020 at 11:45 PM by DavidW from: North Las Vegas, Nevada, United States

I would like to address the biased and incorrect assertions in this "Review".

Your assertion that all such activities are illegal is incorrect. Properly constructed and organized, gift giving is a legal activity. The methods some organizers employ are, however, illegal.

In refuting your claims, I will use the example of Kindred Hearts Team, not to be confused with Kindred Hearts, or any of many similarly named programs.

Is it legal? Yes, it is. It is in compliance with Attorney General regulations on Private Gifting activities

True, the IRS does Not endorse of approve any such activity, however their own code does exclude the 1st $15,000 of gifts received per individual, per calendar year, from taxation (see publication 559, page 26 and form 709 instructions, page 3 under Annual Exclusion).

True, a true gift has no strings attached. The gifts themselves have no strings attached, however, continued participation in the activity does have guidelines to adhere to.

True, no Attorney General will endorse any business or activity, however, they do have regulations which determine what is legal and what is not and any business or activity which complies with those regulations Is legal.

Much of the money is donated to charity? No. In Kindred Hearts Team, gifts are free gifts to the person they are given to. What they do with those gifts is purely up to them.

Do prominent people participate? I wouldn't know. No claims have ever been made about that. We are all just average people.

Kindred hearts Team is not a pyramid. There is no one on "top". Everyone cycles through in the same manner. The government is a pyramid, so is every company in Corporate America. Most of them are not illegal.

Cash, money order, check, electronic transfer, they are all traceable these days and the organizers of Kindred Hearts Team have no say in how the members exchange gifts.

Investing is not a term used in a private activity. Though we are a community, drawn together with the common goal of helping each other, gifts are not investments and do not create wealth or prosperity. They do, however, help those in the community to do things they may not have been able to do, such as pay bills or buy medications.

The individuals in the community are our focus. Not making a quick buck or getting rich.

Honesty, Integrity and Discipline. These are the attributes of a Kindred Hearts Team member.

Delete

0
February 17, 2021 at 3:16 PM by an anonymous user from: Washington, District of Columbia, United States

Do you know how to put in a fix it tickets? My invitee cannot sign in, it says incorrect username or password is incorrect. Password manager says same. Need to contact administration .

Delete

0
October 11, 2020 at 4:58 AM by an anonymous user from: Overland Park, Kansas, United States

Thank your cleanering this up, its a gifting in these times of hardackes. It's hard trying to make ends meet so Thank for cleaning up and yes the Goverment is the biggest scheme

Delete


Write Your Comment, Question, Answer, or Review

Online Threat Alerts Security Tips

Pay the safest way

Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.

Guard your personal information

In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.

Be careful of the information you share

Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with

Know who you’re dealing with

Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.

Check your accounts

Regularly check your account transactions and report any suspicious or unauthorised transactions.

Don’t believe promises of easy money

If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.

Do not open email from people you don’t know

If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.

Think before you click

If an email or text message looks suspicious, don’t open any attachments or click on the links.

Verify urgent requests or unsolicited emails, messages or phone calls before you respond

If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.

Be careful with links and new website addresses

Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.

Secure your personal information

Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.

Stay informed on the latest cyber threats

Keep yourself up to date on current scams by visiting this website daily.

Use Strong Passwords

Strong passwords are critical to online security.

Keep your software up to date and maintain preventative software programs

Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.

Update the operating systems on your electronic devices

Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.

What if You Got Scammed?

Stop Contact With The Scammer

Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.

Secure Your Finances

  • Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
  • Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:

Check Your Computer

If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.

Change Your Account Passwords

Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.

Report The Scam

Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.

Report your issue to the following agencies based on the nature of the scam:

  • Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
  • Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
  • Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.

How To Recognize a Phishing Scam

Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.

Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:

Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might

  • say they’ve noticed some suspicious activity or log-in attempts — they haven’t
  • claim there’s a problem with your account or your payment information — there isn’t
  • say you need to confirm some personal or financial information — you don’t
  • include an invoice you don’t recognize — it’s fake
  • want you to click on a link to make a payment — but the link has malware
  • say you’re eligible to register for a government refund — it’s a scam
  • offer a coupon for free stuff — it’s not real

About Online Threat Alerts (OTA)

Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.

By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.

With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.

Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.

Help maintain Online Threat Alerts (OTA).

Is Kindred Hearts Gifting a Scam?