Six ways to avoid a Ponzi scheme
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If you are like most people, you would jump at the opportunity to put your money into a sure fire investment that promises above-market returns.
But if a broker or anyone else tries to sell you on such a deal, use caution.
You could become the victim of a Ponzi scheme, a type of ruse that for nearly 100 years has ripped off investors for tens of billions of dollars.
In a typical investment Ponzi scheme, fraudsters promise incredibly good and/or incredibly reliable returns.
They deliver for a while, but they are not investing in anything.
Instead, they are using money from new investors to pay their obligations to the old, including the exaggerated returns promised to those who “get in on the ground floor.”
But eventually, the operation cannot bring in enough fresh money to sustain itself and collapses.
Content retrieved from: https://www.herald.co.zw/six-ways-to-avoid-a-ponzi-scheme/.
