Main Goal: To recruit people for money, promising high returns but has no real business supporting it
New investments pay returns for earlier investors.
Eventually, the scheme collapses because it runs out of new recruits.
Illegal and punishable by law.
Checklist to Protect Yourself:
- Is there a real product or service being sold?
- Are you required to ‘invest’ a large sum upfront?
- Is the emphasis more on recruitment than on selling an actual product or service?
- Are the returns promised too good to be true?
Always do your homework before investing your hard-earned money. Talk to people, read the company literature, and be cautious of inflated income claims.
