Home IT Business Avoiding Scams

Scam operators often use their reputations or personal relationships to solicit investment money from friends, neighbors, co-workers, church members, or social groups.

Your Guide Your Styles article46-1-e1521889077326 Home IT Business Avoiding Scams

Sometimes these individuals operate Ponzi schemes. In a Ponzi scheme, little or none of investors’ money is ever invested in the commodity markets, or betting exchanges, as promised.

Your Guide Your Styles article46-3-e1521889105123 Home IT Business Avoiding Scams

A ponzi scheme is a fraudulent scam operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going. The operator of this kind of scam steals the money. Sometimes, the operator creates the illusion of a successful business by paying phony profits to early investors with some of the money the operator receives from later investors.

READ  What Is The Difference Between A Home Based Business And A Home Based Job?

Before You Invest

Your Guide Your Styles article46-2-e1521889089463 Home IT Business Avoiding Scams

We urge you to be skeptical when someone tells you that their services can earn you large profits, overnight success, with minimal risk, even if you have a personal relationship with the individual.

Remember the Key Warning Signs of Fraud

Related Articles