Online Investment Platform
Is LoanTech.top Fake or Real?
Why Is LoanTech.top Fake?
LoanTech.top is an online investment platform which claims to generate profits through online lending. They state that investors can deposit money in the platform and these funds are given out to borrowers, thus accruing interest. However, the profit promised by LoanTech is an absurd 3% per day, that too indefinitely. This gives off a strong alarm that LoanTech may be a pyramid scheme.
A domain name lookup of the website shows that it was registered on 24th August 2019. The registrant’s name and location have been hidden for privacy.
The website states that the platform has been active for 190 days, which would mean that the day it went active was 2nd February 2020. However, the traffic data shows that Loantech.top has only gained traffic in the past month. The majority of the traffic is from Russia and Turkey. This might mean that the company originates in Russia, which is notorious for Ponzi schemes.
In the image above, you can also see that they are claiming to have 152,371 members. They also claim that 55,000 of these members are VIPs. If they have really added 152,371 members in 190 days, it means they are adding roughly 802 members every day. This seems highly unlikely and could be a lie as it is unverifiable.
The website uses a lot of jargon to portray that it is some kind of cutting edge platform to make profits through financing. They claim that investors can start making profits in just 22 days at 3% per day and receive returns forever. This is a questionable claim as no loan given out is ever for an indefinite period and no legitimate investment plan in the world promises returns forever, especially at such a high return rate.
The source of their income becomes obvious when you take a look at LoanTech’s referral program. Investors are encouraged to aggressively recruit new members ie. grow their downlines in order to earn higher commissions and rewards. Members can earn 10% to 20% profits on the investments of their referrals and their downlines, along with fixed bonuses up to $500. This seems to be the only real source of income for the company, which would make LoanTech.top a Ponzi scheme.
The company claims to be registered under the name Bright Future Loans Ltd. and is registered in the UK. The company registration system in the UK is infamously lenient and it is easy for dummy companies to be set up, as we have seen in many cases before. One example is StrongBox250, which I had reviewed for Scamadviser.
The company has been registered on 31st October 2019. There is only one officer listed who is Chris Wright and an address in Harlow, Essex has been provided. It is a bit unusual for a company to have only one officer listed.
The address provided seems to be incomplete. When checked on Google Maps, I found that 17 Little Grove Field is just a street. The address does not mention any office number or building name. This also shows the lack of adequate verification in the UK company registration system.
The most interesting part though is figuring out whether Chris Wright is a real person. I have come across several fake companies before which are registered under figureheads ie. people who have no real involvement with the company.
On LoanTech’s website, Chris Wright is said to be their CEO. However, Chris does not have a LinkedIn profile, which any respectable professional has, especially one on a high level such as CEO. Chris only has a Facebook profile, where the same image as the website is used in the profile picture. The entire profile only promotes LoanTech and there is no evidence such as photos, videos or personal information which prove that Chris is a real person. No other team members from Bright Future Loans Ltd. have been named on the website apart from Chris Wright.
The website has a Review section which implies that many publications have written about LoanTech. However, there are no links provided to check what is actually being said about the company. Most of them seem to be independent blogs and the articles written could have been sponsored, but I have not verified this.
The only contact information provided by LoanTech are two email IDs and the same address mentioned earlier which is incomplete. The email IDs were found to be working when tested. Therefore, the only way to get in touch with the company is by email.
There are a few user reviews available for LoanTech on sites such as Scamadviser and TrustPilot. The reviews are all positive and claim that the platform is giving payouts. These claims may be true, as Ponzi scheme generally give payouts initially to gain the confidence of investors. This encourages the members to reinvest bigger amounts and rope in more investors to keep the scheme alive.
The credibility of these user reviews is low as users have a vested interest to maintain a good image of the company so that more people join under them.
All the signs suggest that LoanTech.top might be a Ponzi scheme. Firstly, not only is a 3% profit per day unrealistic, it becomes completely ridiculous when you consider that the company is claiming to provide returns at the same rate indefinitely. The website claims to be active since February 2020, but traffic data suggests that it has only gone live around July 2020.
The company registration seems to be real, but it does not lend much credibility to LoanTech. This is because the address provided is incomplete and there is no evidence that the company’s CEO Chris Wright is actually involved with the company. There is some evidence that it might be a Russian company masquerading as British. There is no way to contact the company except by email and Facebook.
The referral program is clearly designed to encourage existing investors to earn more by recruiting more people into the scheme. The only real source of income for the scheme seems to be the money coming in from new investors. This makes Loantech.top a pyramid scheme and as such, it is illegal and unsustainable. The deposits made by new members are used to pay off old members and the scheme will inevitably collapse when no new members join.
The reviews by members saying that they are getting payouts may be true. However, such a scheme cannot go on indefinitely as, at some point, no new members will be recruited. When this happens, the company will have no source of revenue and members will stop receiving payouts. Most people who invest in such schemes end up losing money, as it is designed to benefit only the first few investors. The reviews can also not be considered credible as members are incentivized to write good reviews in order to gain more referrals.
It is advisable to avoid investing in LoanTech.top, as it seems to be an illegal pyramid scheme.
Remember: If something seems too good to be true, it probably is.
If you have been a victim of an investment scam, you can take the following steps:
- File a complaint with the payment portal. However, investment scammers mostly use methods such as Bitcoin, Western Union, MoneyGram and other untraceable methods which make refunds impossible.
- File a formal police complaint with the Cybercrime department.
- Leave a negative review on review portals such as Scamadviser and TrustPilot
- Report the website to Google using the Suspicious Site Reporter extension for Chrome
- Give a low rating to the website on Web of Trust. You can also install their extension for the same.
- If the company has a listing on Google My Business or Google Maps, file a complaint using the Business Redressal Complaint Form. Also, leave a negative review explaining what kind of experience you had.
Disclaimer: The views expressed in this article are presented as an educated opinion based on facts and evidence. There is no malicious intent or attempt to defame any individual/s or organization/s. If you are a website owner and would like to provide clarifications regarding your business and/or website, please get in touch using the Contact Form.