<h1>The temptations of ponzi schemes and how to identify them</h1>

 

The political and economic hardship bedeviling our country have made it susceptible to numerous fraudulent rich promising ventures and schemes. Popularly known as ponzi scheme projected and marketed by well articulated, well informed and well advanced fraudsters disguised as gentleman and financial experts filled with empathy and the benevolent spirit to lift the people from poverty thereby offering them the exquisite opportunity to financial freedom.

Call it an investment or whatever, it have been generally conceived and established that most of these ventures always end it tears.

BELOW IS SOME SIMPLE WAYS TO DETECT A FRAUDULENT OR PONZI INVESTMENT AND SCHEME

1.

Double or more returns in few hours or short period

Investments suppose to take some time to yield fruit out of the capital,any investment that promises to payback so quick without any understandable maturity period is suspicious, be mindful that the first attempt will always work, to buy your confidence to invest more and encourage you to  refer and invite your people.

2.

REFERRAL

The money been paid to members are money brought in by new members. The survival of the circle depends on the reception of new members who most likely registers and invests as they are convinced on higher returns. So any investment scheme that requires that your prosperity with them depends on your ability to refer new members is bound to be a fraud and ponzi scheme. It will crash anytime cash inflow from new entrants goes low because there is actually no fiscal or tangible asset to sustain the scheme. More of rub Peter to pay Paul.

3.

CHECK IF THE COMPANY IS REGISTERED WITH THE RELEVANT GOVERNMENT AGENCIES

Don't be greedily hasty to invest because it promises good, overcome laziness and do some  corporate integrity investigations, simply open Corporate  Affairs Commission(CAC) and type the name of  the investment scheme or company, if nothing convincing showed up, then be more suspicious and more inquisitive. Any organization that deals in money that does not want the government to know about them is not known to the law and cannot be sued. It likely may not have any real physical office. These money doubling schemes have a shrewd way of reaching out to people via Internet without registration with the government agencies or having any convincing physical establishment as Office, making it easy for them to rap up quickly and abscond with the investors fund.

4.

LAVISH AND WEALTHY DISPLAY

One of the most deceptive thing about these investment schemes is the initiators and influencers flaunting their alleged expensive and comfortable life style on the internet. They travel to big cities, take photos at beautiful and notable places, flaunt big cars and houses, display expensive wardrobes and jewelries, take photos with celebs etc. All these are business strategy aimed at solidify their story of already living big courtesy of the scheme. They even stage some people to confess how the scheme lifted them from poverty within a short period. Always bear in mind that the organizers of these schemes would allow some people to benefit in order to establish the genuineness of the scheme, making it possible for more trust to be attracted resulting in more investment from the public.

5.

PERSUASIVE MESSAGES AND STORIES

One of the modus operandi of ponzi schemes is the use of persuasive messages, testimonies, encouraging stories. Whenever there is over pushing of an idea to invest in any venture for the purpose of greater return be suspicious and vigilant. Its prevalent in WhatsApp, Facebook messenger and other social apps.

6.

SERVICE OR PRODUCT OFFERED BY THE COMPANY OR SCHEME

The gullible and greedy public tends to rush and invest without knowing where their hard earned money would be invested or the service being rendered by the scheme to generate return on investment (ROI). Though most scheme would propose investing in certain fields like estate, cryto trading etc but how will it be practicable to return in double gain when you are to do nothing  or sell nothing as a counterpart effort.

7.

Why would they avoid banks and loan offering institutions

One big question is if the investment is certain of what they project it yields ,why not approach a bank and take a loan instead of sourcing fund from the uninformed public. You see these influencers and originators of these schemes never had any intention to help but to hoodwink the gullible public. How many of his family members and friends are investing, why not take loan from any of these rich men and entities or even friend if the investment is true to the core.

The button line is that greediness and covetousness blinds people into investing in these fraudulent schemes only to get to their senses when it collapses. Logically by the economic nature of things particularly in Nigeria, there is  no such money to throw around and people desperately seek to become rich without sweating, while these smart guys hid under the pretext of offering opportunity to exploit them. Government should do more sensitisation and orientation to the people on investment while deploying technology to checkmate the spread of fraud in the society.