Anyone Can Fall for a Scam

I came across an article last night that I think is a good reminder that it’s not just people wanting to work at home who fall for scams. Even professionals who are earning a good living can make big mistakes.

This particular Ponzi scheme was pretty sneaky. It was run using facilities at the University of Miami. They claimed to be selling perfume and electronics to a company in Chili and Peru.

But as with any classic Ponzi, there really wasn’t a product. The numbers were faked, and people earned by recruiting. Accountants, lawyers, business people and retired law enforcement officers all fell for it.

Of course, it wouldn’t have worked if any of these people had let common sense take the place of greed. They were promised a quick 18% return on their investments. One person stands to lose $2 million.

As with any other scam, I take this as a good time to remind everyone to think before you join any opportunity. What are you being promised? What do you have to invest? Are the stated returns on your investment reasonable? Are you paid for recruiting rather than selling?

Taking some time to consider each of these factors, doing your research, and sometimes trusting your gut when it says ‘no’ are all good ways to avoid being scammed.

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1 Response

  1. Hi Stephanie – I had no idea that folk got sucked into these schemes for so much money. I can’t understand how anyone could think of putting $2 million into something they hadn’t researched properly.

    As you said the quick 18% profit was obviously the big draw, so the scammers were playing on these people’s greed.

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