Ponzi schemes promise high returns with little to no risk by paying earlier investors with the funds from new investors.
How It Works
Scammers attract investors by offering lucrative returns on their investments. They use the money from new investors to pay returns to earlier investors, creating an illusion of a profitable enterprise.
How to Avoid It
Do Your Research: Investigate the background of the company and its founders.
Be Skeptical of High Returns: If it sounds too good to be true, it probably is.
Check for Licensing: Ensure the investment platform is registered with relevant financial authorities.
