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Saturday, May 24, 2014

How to identify a ponzi scheme

Ponzi schemes masquerade as legitimate businesses or investment products, but are actually a decepitve ploy to seperate people from their money. Ponzi schemers utilize a range of sales and marketing tactics commonly used in industry, and this makes it more difficult to differentiate them from legal entities. Some key characteristics of ponzi schemes are a reliance on charismatic presentation and over-the-top promises, little disclosure of or falsification of financial statements and unaudited accounting practices. Not all unsubstantiated investment opportunities are ponzi schemes. However, as with any financial or job related decision, if there is not a guarantee of return on investment or income, then many outcomes and scenarios are possible.

 Ponzi Schemes