When next, a friend approaches you just like my friend did and they tell you about this great investment going on, people are cashing out and such, Wait! Wait a minute before you jump on it. That might just be another Ponzi scheme wearing a new gown or in a new bottle. One of the smart strategies Ponzi organizers use is name changing, yes! They rebrand. And guess what, people still fall victim, at least I did! (tears). Check out these red flags before investing in that new business you’ve just been told. By the way, if you are an entrepreneur and you are about to start a business and need mentorship. Quickly book a free mentorship session with our CEO here.
Ponzi scheme identity – Warning Signs
- Unregistered business identity. Ponzi schemes are oftentimes but are not limited to involve investments that are not registered with Corporate Affairs Commission (CAC), financial or state regulators. They shift focus from this question, by engaging existing and potential investors in testimonies of those who have cashed out, thereby using the’ fear of missing out’ strategy on people. Although some have upgraded to even getting CAC registration documents. You have work to do, research for information about their management, products, services, and finances.
- The government securities laws require investment professionals and companies to be registered and licensed. Most Ponzi schemes hardly possess license documents. They most involve unlicensed individuals and unregistered firms
- Every investment carries some risk degree, when an investment yields higher ROI, it is only logical that such carries more risk. But when the business promises high returns with no risk. Wear your suspicion lens.
- The business doesn’t reflect market conditions or it’s not affected by it. Returns are just overly consistent, regardless of the market going up and down condition. Be sceptical!
- Their structure is complex, secretive with no straightforward strategies or revenue channels. Avoid such investment. If you can’t get complete information about them or find it difficult to understand their operations/strategies.
- They told you they have people trading for them, they are working with foreign partners/brokers to invest your money in forex. Run!
- They are involved in unreasonable giveaways/charity in the name of Corporate Social Responsibility CSR. They are only trying to play on your intelligence.
- They told you to bring one person to your chain and start earning extra money from the person’s investment.
- You’ll make 40% ROI in 7days.
- We are working on our website, upgrading our website or payment platform, that’s why you are unable to withdraw. Ponzi scheme organizers most times prevent investors from cashing out by restricting the payment channels. Meanwhile, some just offer you a higher ROI percentage to make you stay put and leave your invested capital with the hope of cashing out bigger. At that juncture, you’ve been scammed
- We would pay first investors a certain percentage and we would pay others little by little. We are working things out and trying to liquidate our properties so that we can pay everyone their capital back. (Hello, it’s Japa o’clock – the organizers are about to run away with your hard-earned money). If you get to this stage in the investment programme, CONGRATULATIONS! You are now the latest Ponzi scheme victim.
Who are Ponzi scheme planners looking for
Ponzi scheme promoters are looking for greedy, desperate, naive, young and old average earners, who are not well informed on investment and are just open to all that comes their way. Many opinion leaders have blamed our porous security system for the vulnerability of Nigerians to these schemes. But the truth is, real money is slow and steady. We all become a victim when we allow the glam and social media pressure of getting rich quick enters our head, it breaks us down and makes us willing to do anything just to make money. If you are in need of a business idea to invest here you can check out our previous blog on How To Find Authentic Business Ideas. You Are Sitting On Gold!
Remember, when it looks too good to be true, where your suspicious lens and screen very well, to confirm it’s not another Ponzi scheme in another packaging.