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PONZI SCHEMES; SCHEME WHICH CAN BE A NIGHTMARE!!!!!!!
- A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors.
- It is a fraudulant scam which generates returns for earlier investors with money taken from later investors.
- when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes unravel.
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HOW IT ACTUALLY WORKS!🤔🤔
- Similar to a pyramid scheme, the Ponzi scheme generates returns for older investors by acquiring new investors, who are promised a large profit at little to no risk.
- Both fraudulent arrangements are premised on using new investors' funds to pay the earlier backers.
- Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments.
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HOW TO IDENTIFY A FAKE ONE!!!
- A guaranteed promise of high returns with little risk
- A consistent flow of returns regardless of market conditions.
- Investments that have not been registered with the Securities and Exchange Commission (SEC)
- Investment strategies that are secret or described as too complex to explain
- Clients not allowed to view official paperwork for their investment
- Clients facing difficulties removing their money.
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DO THIS IF YOU ARE STRUCK IN ONE!!
- the first step would be trying to get your money back.
- Do not invest any more money unless your doubts have been resolved.
- Keep a Check on your greed and take all the due diligence steps before you go any further with the scheme.
- report the business to the authorities.
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CURATED BY
Biotechnology student passionate about business,writing and good design. Topics i post about : 👉 Marketing 👉Startups 👉 Entrepreneurship 👉E commerce 👉Audience building.
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