Investment Scams Feed On Need And Greed

Scammers prey on those looking for an ad-ditional source of income to augment their earnings or to grow their nest egg and secure their future. They offer investment deals that guarantee huge profits for doing almost nothing.

Some may be skeptical or cautious and initially invest just a small amount to test the waters. But once they get a taste of the quick profit, greed kicks in and they invest more or go all-in. In their desire to earn quick money, some investors obtain loans from relatives, friends and other sources, and invest the money loaned in these scams. Greed is contagious so friends and relatives also tend to join in the frenzy and the scammers reel them all in and then disappears.

Time and again, the Securities and Exchange Commission issues warnings to the public. “The public must be wary that any promise of massive rates of return with little or no risk is an indication of a Ponzi Scheme where monies from new investors are used in paying fake ‘profits’ to earlier investors and is designed mainly to favor its top recruiters and prior risk takers and is detrimental to subsequent members in case of scarcity of new investors.”