Were you a victim of MMM or a juicy investment with a very high Return on Investment? Unfortunately, several people have fallen prey to different Ponzi schemes due to the juicy offers these schemes present.
Did you know the name Ponzi is a person’s name?
Charles Ponzi is popularly associated with the Ponzi scheme after he conned investors with a postage stamp speculation scheme in the 1920s, earning him the legacy of the Ponzi scheme. He wasn’t the first to engage in this kind of fraud, but he was one of the most notorious people. In essence, he took money from those who wanted to invest in his business and used that money to offer investors significant interest payments.
A Ponzi scheme can be likened to a pyramid scheme where Peter is robbed to pay Paul. The creators of Ponzi schemes frequently assure you that by investing your money, they will make a large return with little to no risk. Early investors in the hoax may quickly see high returns from what they erroneously believe to be interest cheques. They are typically so thrilled that they increase their investment or find new investors among their friends and relatives. The investment, however, does not exist. These schemes usually fail when it becomes challenging to find new investors or when significant portions of the existing investors withdraw their money.
If you pay attention and are aware of what to look for, there are various indicators that something is awry with an investment scheme. Below are a few of them:
Ponzi schemes are characterised by promises of unrealistic investment profit. The promoter of a Ponzi scheme will pay out significant earnings in the beginning as promised just to win over early investors and entice additional ones. However, investors lose trust in the promoter once the supply of new investors inevitably runs out, and the promoter cannot pay out returns.
Watch Out for Covert Tactics and Red Flags
If you don’t understand an investment or can’t get all the information you need, stay away from it. Red flags include justifications for mistakes, lack of documentation, or secret strategies.
Participation By Referrals
Every Ponzi scheme is heavily reliant on its ability to keep luring in fresh participants to survive. The fraud operation will fall apart if there isn’t a constant flow of new investors to cover the prior investors’ payments. We urge you to decline the invitation if the only method to join any investment platform is through recommendations! The con artist will initially pay off the victims to get more friends and associates to participate in the scam. It is easy to get persuaded if you know someone who has received the promised payment. You might be fortunate to receive the promised amount. But after the con artist achieves their goal, you will see that you have been ripped off.
Unregulated Investment Platform
Most Ponzi schemes do not have verifiable websites, registration details, or addresses, and are not regulated by any regulatory body. The benefit of registration is that it gives investors access to more information about the firm’s management, goods, services, and financials.
Ceepas offers secure investment platforms regulated by Nigeria’s regulatory bodies.
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