These scams may look different, but they all have one thing in common they promise fast, easy money. There’s no real investment behind them, just a scheme to bring in new people to keep the scam going. When new signups slow down, the scam collapses and most people lose everything.
Tips to slam investment scams
- Remember, real investments don’t promise fast, risk-free profits
- If the company’s not licensed by the Financial Sector Conduct Authority (FSCA), it’s a big red flag
- Do your research on potential investments – if you don’t understand it, don’t invest in it
- If you’re added to an investment group on social media or a messaging platform, leave or block the group
How to spot a pyramid scheme
- Promises high returns in a short time
- You earn more by recruiting others
- You must pay a joining fee or make an initial investment
- Uses levels like silver, gold or platinum to encourage upgrades
- Gives little or no info on where your money actually goes
- You may be invited by someone you trust, like a friend or community leader
- Promoted on messaging apps like WhatsApp
How to spot a Ponzi scheme
- Promises very high returns with no risk in a short time
- Keeps details of how the investment works a secret
- Pays out small returns at first to trick people into investing more money
- Disappears when new money stops coming in, and the scheme collapses
How to spot a cryptocurrency scam
- Promoted on social media or messaging apps.
- Promises very high returns with little or no risk
- Social media profile shows luxury lifestyle, cars and clothes
- Pushes you to invest quickly
- Marketed as a “once-in-a-lifetime opportunity”
- Professional-looking websites with little information about the company
- Offers to share insider knowledge and help you with your first few trades
