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Is Champcash app new form of chain-money scheme?

YOGESH SAPKALE | 12/01/2016

The Champcash app on Google Play store, wants you to install 10 other apps and refer it to others to earn unlimited money, similar to money circulations scams
Champcash, a mobile app from Champion Networks Pvt Ltd, is found luring several Android mobile users, under the pretext of providing opportunity to earn unlimited money, free. However, after checking its business model, Champcash appears more like a chain-money, operating without permission from the regulators.
“Champcash is an Android Application Through which Anyone Can be a Millionaire By Just Installing Some Apps in Mobile. Just Refer Champcash to Your Friends and Ask them to Complete the Challenge By installing 8-10 Apps in their Android phone, You will Get its payment instantly,” the company says on its website.
The app is listed under entertainment on Google Play and its title is “Champcash Earn Money Free”. Here is says, “Funda is Simple, We are Giving Money of Advertisement. Users Installs the Apps and Advertisers Pay us and We Pay Users. You can Earn Unlimited without investing any money…”
This may sound good for a gullible person in need of free money, but remember, it is not as easy as it sounds. There are two serious issues with this claim from Champcash. One, there is no clarity on which 10 apps that a user is bound to install, open and use for at least a minute and second, why would an advertiser pay money to anyone for installing a third party apps? Also, if Champcash app is free, then why the user needs to punch in a sponsor ID?
It may sound to be a funny coincidence, but the usage of language and grammar on Champcash app on Google Play store and its own website, is more like the spam emails from fraudsters offering lottery money. (Read: RBI offering unclaimed funds through lottery? Beware, scamsters are on the prowl again )
Another issue is, how does the company claim to distribute money? Champcash says, “Other Companies are Giving money directly to their Users if they install Apps in their Phone. We Have Changed this Scenario, we are not giving any Money to the User who is Installing Apps in his phone But we are Distributing that money in Whole Network.”
Now, I have been using, testing several mobile apps since past several years, and have yet to come across anyone who offers money to install an app. It is the other way around. If you use free apps, then there may be some advertising popping up while you use it. And if it is a paid version, then there would not be any advertisement besides providing your some more features of the app.
Since Champcash claims to receive and distribute money to everyone who uses its app, we asked a few questions around. First, we asked regulators, if Champcash is registered with them, since it is in money circulation business. In an email reply, an official from the Reserve Bank of India (RBI) clarified, “The company (Champcash or Champion Networks Pvt Ltd) is not registered with us – neither as an authorised entity under Payment and Settlement Act nor as an NBFC.”
At the same time, we also sent some questions to Champcash, which are yet to be answered by the company. Here are the questions we asked…
  1. What is the churning ratio of Champcash users? On an average, how many users join and leave (uninstall) the app in a 12-months period? What is the user retention rate in this line of sponsorship?
  2. What is the average amount, a user typically earns in a month/year?
  3. How many users earn less than $100 as reference fee in a year?
  4. What is the maximum amount a user had earned in a year through referring Champcash app?
  5. What are the chances that someone who starts from scratch and earns a $1 million Champ Cash?
  6. Does the business module really free people from their jobs or have they just replaced their job with another that has more risk?
  7. Does the Champcash really allow the leaders more time with their families?
  8. Which are the apps that are referred for users by Champcash?
  9. What information is obtained by Champcash and the other installed apps from user’s mobile phone?
  10. Kindly tell us names of advertisers, who are ready to pay $2 just for installing and using a third party app for a minute?
  11. How many advertisers are enrolled in Champcash programme?
  12. How many apps developers had partnered with Champcash programme?
  13. Who are the top executives at Champcash?
  14. Is there any specific reason, your domain is registered under proxy and all details like owner, contact info are kept hidden?
  15. Is Champion Networks Pvt Ltd registered with any regulator like the RBI, since it is involved in payouts? Also how much TDS is deducted on the payouts and deposited to the I-T Dept by Champcash?

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