Business Man

6 Red Flags of a Ponzi Scheme

Finding out the system you’ve been in for multiple years is a ponzi scheme can be incredibly soul crushing.

Business Man

Especially when you’ve invested thousands of your hard earned money into it and don’t even know if you’re going to get that money back.

There are too many ponzi schemes out there these days and unfortunately they all look 100% legit.

The shady owners make their business look as professional as possible and that’s exactly how they hook you in and make you start paying money.

In this article I’m going to show you some major red flags to look out for when you come across an opportunity you want to join.

Lets get right into it.

What is a Ponzi Scheme?

First and foremost, a ponzi scheme is an opportunity that promises you big returns on your investment with little to no risk.

They will use the money from newer investors and give that money to earlier investors that came in first.

Now the top guys are getting all the money while newbies are left earning nothing.

Although they will show them earning money in their account but they won’t actually pay them the money.

There are many types of ponzi schemes but that’s the general idea of how they all work.

7 Major Red Flags of a Dirty Little Ponzi Scheme

1. It sounds too good to be true

This statement rings true when it comes to a ponzi scheme and should be your very first alarm bell that you need to take seriously.

Now you need to leave OR do some more digging around to see what they’re really offering that makes them so good.

2. There’s little to no risk

When you hear them say they will give you big returns on your investment with little to no risk, run for the hills and never look back.

This is a tactic used to hook, line and sinker your ass in.

They don’t mention anything of the risks involved because honestly, there is no risk because they’re not running a legit system.

They’re just taking your money and giving it to the older members.

An example would be: 1% returns per day, paid weekly, with no mention of risks involved anywhere.

3. They “guarantee” earnings

Ponzi schemes will usually guarantee you big returns.

Legally they’re not allowed to do this and it’s a major red flag that they are lying through their teeth.

They just want your money and they will say whatever they can to get it, because at the end of the day they want to get rich fast.

4. No real owners

A person running a ponzi scheme will never ever have his real name plastered all over the website.

They will never mention the owner at all, or just use a pen name.

And if they are using a pen name, look it up on Google and see if you can find anymore information about him.

Chances are you cannot because he’s not a real person.

5. Private domain name

They will hide their identity even more by registering their domain name privately.

That way when someone searches up their website details, it’s going to come up as “private” so they don’t get exposed.

6. Can only pay with uncommon methods

Things like PayPal, Payoneer and Wire transfer are all common payment methods and can be traced.

However, when they only accept payments from uncommon sources such as Bitcoin and other crpytocurrencies, it starts to get suspicious.

There is no paper trail because cryptocurrency is unregulated, so they can still receive the money but no one knows who they are.

How to Avoid a Big Fat Ponzi Scheme

The only real way to avoid falling into a trap is to do your research.

Researching on Google is your best approach as well as keeping an eye out for these red flags that I have mentioned.

Well that concludes this article.

I would like to know if you’ve been involved in a ponzi scheme before or know of any you want me to review. Comment them below!

Thanks and have a great day.

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