How to spot a Ponzi scheme
Latest posts by konvigilante (see all)
- 🇰🇪 Buy Now, Pay Later Apps In Kenya: Sevi Review 2023 - September 30, 2023
- How To Find NSSF Username & Password In 2023 - September 29, 2023
- 3 Top Platforms To Report Digital Lenders In Kenya For Quick Action - September 27, 2023
NAME: Ponzi scheme
NATURE: illegal
SOLE PURPOSE: investment
PROFIT GENERATION: new investors and increase in investment fund
ENTRY: payment of investments
PRODUCTS/SERVICES: None
OPERATIONS:
-
The promoter(fraudster) promises high investment returns with little or no risks involved
-
all investments are directed to the promoter
-
Dividends are paid to initial investors using the funds of subsequent investors
INTERACTION WITH PROMOTER: Direct
COLLAPSE: Depends on the gullibility of the investors
BENEFICIARIES: The promoter
LOSERS: investors
REFUND: None
Related Posts: How to spot a Multi level marketing (MLM) plan ; How to spot a pyramid scheme
