AVOID YOUR LOVED ONES GET SCAMMED! MAKE THEM AWARE!
THOSE FRAUDSTERS TAKE ADVANTAGE OF IGNORANCE. PEOPLE WHO INVEST IN HYIP (high yield investment programmes) ARE PLAYING WITH FIRE.
Forex Scams. These things are becoming a lot more prevalent; here we are going to discuss forex ponzi schemes as opposed to generic ponzi schemes like the infamous Bernie Madoff one.
Financial Scams to Avoid: Forex Ponzi Schemes
Forex ponzi schemes are more common than you think because a lot of people feel embarrassed that they’ve lost money to them.
1) Returns that are too good to be true.
2) No losing trades / no losing months / no losing months – they will show you stats that looks quite good on paper.
3) Lockup period.
Generally speaking these schemes will have a pool of people who will invest funds with them – say a number of people putting in an initial 10k in. Some of these ‘fund managers’ actually think they will be able to manage and trade profitably but this doesn’t happen and when they lose the investors funds they will try to convince them to put more money in. Other scammers won’t even trade at all and will scam you of your money – these will be outright fraud.