Phishing Scam Alert!
By: Brooklynne Carmichael
How does a pyramid scheme work?
Pyramid schemes success depends on the ability to recruit more and more investors. Since there are only a limited number of people in a given community, all pyramid schemes will ultimately collapse. The only people who make money are those few who are on the top of the pyramid.
What makes the Scam believable?
A relatively plausible explanation of how the investment can achieve these above normal rates of return. One often-used explanation is that the investor is skilled and/or has some inside information. Another possible explanation is that the investor has access to an investment opportunity not otherwise available to the general public.
Who does a pyramid scheme target?
Financial fraud victims can be found at every level of economical status, age bracket, and education. Anyone can be tied to a schemer, placing trust in the individual based on previous or existing associations.
Who will be hurt during the scam?
Pyramid schemes usually collapse, as there is no legitimate profit to sustain the process.When the flow of new investors slows down or if a large number of investors want to cash out, the scheme collapses. And the people who get hurt are the investors.
What is the economic impact?
For example, Bernie Madoff’s recent Pyramid scheme bilked investors out of 50 billion dollars, causing some to lose their life savings. The magnitude of the Madoff scandal illustrates why Pyramid schemes are traps that both novice and experienced investors must be aware of.
Do you think the average person would fall for this scam?
Yes, due to the fact that anyone can be scammed, and the investors that are involved with this scam are average people.
What does this scam rely on to be successful?
This scam relies on the income of the newer investor, in the promise that they will get a higher profit than the amount they put in. But the truth is the only people gaining money from this scam is the people at the top of the pyramid.
What emotion does the scam depend on?
This scams emotion depends on the emotion of greed, wanting to main more money.
Are you in a Pyramid scam?
If after reading this flyer, you think that you may have gotten yourself mixed in a scam like this please call the provider below.
Phone: (180)233 4500