Infamous con artists ponzi schemes – The Top Ones to Know About

If you are looking to invest your money and seemingly getting good returns, ones that are too good to be true, it probably is. You night be a victim of a ponzi scheme.

What is it?

Duping people by promising them of unbelievably high returns comprises the soul of Ponzi schemes. Such people lure others into believing that they have a very efficient business model which can help them get rich in a matter of months.

So, their investors start putting their money. They begin to pay earlier ones with the investment of later ones. This makes people believe that there actually exists such business model attracting many more people. Along all these transactions, the founder cleverly skims money for his personal gains and if he senses any danger, flees with all the money.

How is social security different?

Often there is a debate if the social security is also a Ponzi scheme. But here is the difference. In Ponzi scheme, new investors have to be added. If new ones are not added, the cash flow stops. But in social security, every earning member has to contribute. Plus, it is not by choice. you have to pay if you wish to have social security. This can go on for generations benefitting each generation y the money of their next generation.

The Top Ponzi Schemes You Need to Know About

Now, this is not something simply to be regarded as the recent phenomenon. Named after Charles Ponzi, it is actually a scheme that existed way before him. It is just that Charles ponzi conducted it for the first time on such a large scale.

Each and every country has its share own share of infamous con men that cheated people in millions. In 1878, sarah howe of the USA opened a savings bank that claimed to be exclusively for unmarried women. Now, such women needed monetary backup but their income used to be insufficient. She promised an enormous 8% return through funds from a charity organization. But, any such organization never existed. She fled with $500,00.

The Recent Ponzi Scheme Scams

In recent years, the Ponzi scheme by Bernard madoff has shook the Wall Street. The way he functioned never let anyone doubt that he was a fraudster. Similarly the Ponzi schemes by woodbridge group of companies, trendon t.shavers and bitconnect have shook the world. The Ponzi scheme by trendon t. shavers was unique since he dealt with bitcoins. A fraudulent scheme with a digital currency is a new and challenging area even for the law enforcement agencies.

It is something that can happen to anybody. Even you. Here is why.

In 2001, the entire country of Haiti fell prey to Ponzi schemes in the form of co-operative societies which lured the poor people into making big investments. Ponzi schemes have shown an upward trend in recent years owing to the growing internet presence. What is more disturbing is that even well informed people are falling prey to it. Tougher steps need to be taken.

If you’re looking to invest money, know what’s it about first. You don’t want to get into a Ponzi scheme.

Leave a Reply