Avoid Get Rich Quick Schemes

It’s crucial that you make smart money growing decisions than falling for pyramid schemes

- Palesa Matjebele

WHEN it comes to money, even the smartest people can get ripped off. People need to be careful when trying to enrich themselves, there’s no such a thing as instant money. You can’t trust anyone, especially with all these pyramid schemes that promise huge returns.

FALSE PROMISES

Whenever the topic arises, the first question that people ask is what a pyramid scheme is. A pyramid scheme is a fraudulent investment that doesn’t benefit the investor but the perpetrator. Kalyani Pillay, the CEO of Sabric, explains that investors get hooked in by the false promises of getting huge returns. She says the perpetrator makes a very appealing and enticing presentation to an average person. Because on the surface, it looks legit, people join the schemes.

“The first few investors are lucky enough to get a slice of the cake, this is nothing but a trick to get more investors and get the existing members to put in more money with the hopes of doubling the amount,” Kalyani says.

“Scammers will go to great lengths to get victims to invest in these schemes through the use of social engineering tactics.”