Posted on January 10, 2010 by jia zhou

People are most vulnerable when they are facing the attractive offers of high yield return on investment. Even myself, when there is an opportunity to earn some extra money for my pocket, I couldn’t resist it. I would invested in attempt to get as much as I can. That is the greedy nature of our human beings. Those scamsters, and con masters would come up anything that attract our interest, and gradually lure us to their traps. Ponzi scheme is one of the most common traps we had encountered recently.

All Ponzi schemes operate in the similar fashion. The initial investors are paid with above the market return from the new investors’ money. It goes on for a little while, after the good words spread out, and more and more investors are lured into the trap. Then, the con master will no longer pay those investors who comes in again. Many people would then losing their “blood -earned” saving money.
These schemes can be operated in club house, or professional organization. For instance, if a reputed doctor would invest something that is high risk, and he seems got a high return, you probably will follow suit. Since he is a reputed professionals. Affinity fraud is the name of it.

So, I should advised everyone here. There is nothing wrong to make the best of your savings. But before you do any investment. You should do some research, and investigate what you are investing in.