Beware of Ponzi Schemes!
Have you ever heard of guaranteed high returns with no risk? Sounds too good to be true – and it usually is! Ponzi schemes are scams designed to take your money. Here’s how they work:
🔴 Signs of a Ponzi Scheme:
❌ Unrealistic profit promises – No investment is risk-free with huge returns.
❌ No real business model – Old investors are paid with money from new ones.
❌ Pressure to recruit others – The scheme collapses when new investors stop joining.
❌ Lack of transparency – No clear strategy or regulated operations.
- Most people lose their money, while only the scammers profit!
- Stay alert & invest only in legitimate, regulated markets!
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Ponzi schemes and investment fraud
A Ponzi scheme is a kind of investment fraud that promises to help you make money. Often, it’s tied to an investment in real estate or a new business venture. But your earnings aren’t real — they’re just new funds from new investors, which are needed to pay back the earlier investors. The whole scam blows up when the money runs dry.
Warning signs of investment fraud:
You’re promised high returns with little or no risk. Returns dry up after an initial large payout. You’re pressured to invest or get others to sign up.
