If making $50,000 in “passive income” was as easy as buying a digital course, we’d all be retired by now. Spoiler: it’s not — and scammers are cashing in on our entrepreneurial dreams.
In this publication, we're uncovering a scam that has been making waves and could potentially affect you or someone you know. Let’s dive right in.
Scammers are targeting aspiring entrepreneurs with high-ticket business courses that promise massive returns — but instead deliver broken promises, fake reviews, and thousands in losses.
How It Works:
Here’s the play-by-play of how this business opportunity scam operated:
- Bait with Big Promises: The scammer behind “Growth Cave” advertised online courses like the Knowledge Business Accelerator that claimed to guarantee $10,000–$50,000 in passive income.
- Emotional Hook: Ads, especially on YouTube, hit hard on entrepreneurial pain points — struggling with income, tired of 9-to-5, wanting to “finally break free.”
- Fake Success Stories: Positive reviews flooded the web — but many were allegedly from paid employees posing as successful customers.
- The Hard Sell: Consumers were persuaded to spend thousands — often tens of thousands — on access to exclusive tools, training, and coaching.
- Then... Ghosted: After the sale, the support disappeared. The promised results never came. No refunds, no setup, no success.
Who’s Targeted:
- Aspiring entrepreneurs, especially those looking to build passive income online
- Young adults and mid-career professionals frustrated with their job or income
- People active on YouTube, Instagram, and other social media platforms where these ads are heavily run
- Anyone looking for “easy money” or financial freedom
According to the Federal Trade Commission (FTC), the median loss in business opportunity scams jumped from $700 to over $2,200 in 2024 — a massive spike.
Real-Life Example:
A YouTuber issued a clear warning:
“I got a PSA for anybody curious, looking into doing business with Growth Cave. Don’t do it.”
Others shared how they were convinced by fake testimonials and slick marketing, only to be left thousands of dollars poorer with nothing to show for it. Sammi Nachitgal from the FTC says Growth Cave made “impossible to fail” guarantees, pressured people into buying, then didn’t deliver. A federal court has since halted Growth Cave’s operations.
Why You Should Care:
These scams prey on ambition, especially during times of financial stress. Victims don’t just lose money — they lose time, trust, and confidence in themselves. Many invest savings or even take on debt, believing they’re building a future, only to end up worse off.
Even worse, deceptive testimonial practices — where paid staff pose as customers — violate the FTC’s new Consumer Review and Testimonial Rule, putting legitimate consumer trust at risk.
How to Protect Yourself:
• Be skeptical of “guaranteed” results — especially in business. No legit business can guarantee profit.
• Research reviews independently. Look for third-party feedback, and verify the credibility of testimonials.
• Never rush into big purchases. Scammers rely on urgency. Take time to sleep on it, talk to a friend, or consult a financial advisor.
• Contact the FTC if you suspect fraud. Reports help them investigate and stop bad actors faster.
• Know your refund rights. Under the FTC’s rule, deceptive marketing and fake reviews are grounds for legal action.
Quick Tips:
Quick Tip #1: Did you know? The FTC’s new rule on fake reviews can hold companies legally responsible for misleading endorsements.
Pro Tip: Any “training program” promising easy money with zero effort is a red flag. Real businesses take work — no exceptions.
Stay safe, stay informed.
Keywords:
• Business Opportunity Scam – A fraud that promises business success or passive income in exchange for upfront payments.
• Passive Income – Money earned with minimal effort or active work, often misused in scam pitches.
• Consumer Review and Testimonial Rule – An FTC rule that bans the use of fake, paid, or deceptive online reviews.
• Knowledge Business Accelerator – A digital program offered by Growth Cave, now under FTC litigation.
• Growth Cave – A business accused by the FTC of misleading advertising, fake reviews, and consumer fraud.
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