Ever heard of an investment plan that sounds too good to be true? It probably is. Get-rich-quick schemes, such as the Ponzi or Pyramid schemes, promise high returns to its investors at little to no risk. These ‘returns’ are actually money received from earlier investors, and once these funds dry up, the schemes typically unravel.
Warning Sign: One tell-tale sign is when the income you’re promised is based on the number of people you recruit, and not upon the sale of products to customers.
Sometimes, the person doing the selling won’t even know that they’re selling a fraudulent product, being yet another victim in a larger scheme of things. Many fraud victims actually base their decisions on the advice of a relative or friend, so make sure you do your own research!
