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How To Avoid Ponzi Schemes: Red Flags To Look For
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[QUOTE="Yusra3, post: 321689, member: 31907"] Ponzi schemes are a type of fraud that have become increasingly popular in recent years. They're also known as pyramid schemes and chain letters. The main purpose of Ponzi schemes is to take money from new investors and use it to pay off old investors. The scheme works by promising large returns on investments, but in reality it only pays out small amounts back to investors who originally put money into the scheme. There are many red flags that can help you avoid a Ponzi scheme. Here's a list of some of the most common ones: 1. The company is promising high returns on investments, but they have no way of guaranteeing those returns. 2. The company has an unrealistic return rate for their investment programs and does not provide any proof that these numbers are true. 3. The company promises high returns for short periods of time, which means that no matter how much money you put in, it will never be enough to make up for what you've lost over time. 4. The company uses unrealistic terms like "guaranteed" or "100% guaranteed" when describing how much money they'll give back to investors when they decide to close down or liquidate all of their assets. [/QUOTE]
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How To Avoid Ponzi Schemes: Red Flags To Look For
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