How people fall victims of Ponzi schemes and how to avoid it

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Due to people’s insatiable appetite to multiply their money in ways beyond their comprehension, they fall for a Ponzi scheme. Some groups of investors get together and promise to give people exorbitant returns on their investments. Essentially, they promote a get-rich-quick mentality. Here is how to identify Ponzi schemes.

Ponzi schemes are attention-grabbing

Because the owners know that a lot of people are greedy and will do all within their means to make money, even if it means going overboard, they will offer abnormally high returns for a relatively small amount of money. Also, they are more focused on getting more people to join them. This is because they use the money of new investors to pay old investors and along the line, the system eventually crashes. In short, they rob Peter to pay Paul. If you have fallen victim to fake high-interest-rate investments or Ponzi schemes, you can share your review on so that others can learn from your experience. The ripple effect from sharing your review could come back to save your friends and loved ones or even your children in the future. Hence, you will not only be doing several random strangers that could have gotten scammed a favor. You could also be doing your family members and loved ones a favor when you drop reviews about scams that you have fallen victim to or almost fallen victim to.

Ponzi schemes are illegal and vague

No reasonable country legalizes Ponzi schemes. Before you invest in any company, you should confirm if they are registered with the government and licensed to operate in the company. Additionally, they also use vague terms to describe their activities. They look for juicy names that will surely whet people’s appetite and cause them to fall victims.

However, if you keep your eyes peeled enough, you won’t have to fall victim of Ponzi schemes. Here are ways to do that:

Get a solid financial education

People who know how money and investments work rarely fall victims to fraudulent high investments schemes. Huge returns are only possible on huge amounts of money. Investment is not the solution to having more money, increase your income pie is. Rather than look for opportunities that will multiply your money always and are likely to cause you to regret it in the future, look for more sources of income and licensed investment institutions you can deal with.

Read online reviews

Before you dabble into any investment scheme, read what people are saying about such a scheme online. If the scheme is fraudulent, you are likely to sense it from what people say about them. Ensure you read reviews on reputable review sites. A lot of Ponzi schemes doctor reviews and post them online, in a bid to mislead people into thinking their services are authentic. Once you cant really place your finger on what an investment scheme offers or you feel off about the reviews, you should avoid the scheme.

Confirm if the investment scheme is recognized in your country and report them if they aren’t.

Look for the list that contains all the names of registered investment firms in your country, when you come across the advert for any investment firms. The internet has made it possible for you to find as many names as possible in a matter of minutes. Once you cannot confirm their registration with the government, report such investment scheme to the appropriate authorities immediately. The earlier you do this; the more other unsuspecting people are prevented from falling victims to shady deals.