Don’t Become a Ponzi Scheme Victim Through Online Fraud
October 17, 2009 · Print This Article
It’s really difficult not to dredge up the old saying, “There’s a sucker born every minute!” Almost everyone has heard it, but do they pay attention? Apparently not because there is a whole industry of Ponzi schemes that is thriving even after Bernard Madoff was sent to prison.
Here is a fact for consumers to understand. Ponzi schemes are the most common type of investment fraud and they are perpetrated in a number of ways. People jump into these schemes both offline and online too leading to a host of problems including loss of savings, identify theft and mounting legal fees.
If you are the typical middle class wage earner, you may be thinking Ponzi schemes are only targeted at the wealthy. That is simply not true. The Billionaire Boys Club was a $53 million scam promising excessive returns on money invested by middle class investors. It’s hard to resist promises of 12% returns. But here’s another old saying that should be kept in mind: If it sounds too good to be true, then it probably is.
Most readers know these old sayings are true but seem to be willing to toss them out the window when a smart slick salesman claims to have figured out how to beat the market. Online stock traders, local brokers, and investment analysts spend millions of dollars on technical analysis software trying to beat the market and yet consumers will hand over millions to people who simply claim they can earn big money over the long term. It really doesn’t make sense except on an emotional level.
Watching retired middle class women talk about how Madoff took every dime of their retirement money is painful. You would think the Madoff situation would have led to heightened consumer awareness and a reduction in the number of Ponzi schemes. But that is not so.
The Texas Securities Commissioner Denise Crawford told USA Today reporter John Waggoner, “In my office in Texas, 80% of our cases are Ponzi schemes.”
Ponzi schemes can take many different forms too and that may be one reason why so many people find themselves victims. Ponzi schemes do not just involve stocks and money markets. They run the gamut of creative ideas.
For example, a Nebraska police officer ran a Ponzi scheme involving martial arts clothing and golf outings. Other schemes have involved foreign exchange trading, real estate and automated teller machines.
Today many people get involved in Ponzi schemes initially through the internet. One of the key ingredients for a successful Ponzi scheme targeting the average investor is the scheme creator has to be a good sales person. People go online looking for an opportunity, come across a website loaded with certification logos and promises of investment success and decide to fill in the contact box. The schemer then contacts the person by phone or email and usually invites them to a nearby seminar. The hunt for a sucker is on!
There have also been many cases where the investor finds them involved in an elaborate scheme of both investor fraud and identify theft. To invest in the Ponzi scheme you have to eventually give your social security number and other personal information. That’s all the person committing fraud needs.
So how do you prevent becoming a Ponzi scheme victim? First you have to remember those old sayings. Don’t be a sucker and follow your instincts. If you get excited about an investment possibility and everyone else is telling you it is risky or doesn’t make sense….listen to them. You should not ever sign up for anything online until you do your homework on the business.
For example, you can to the finra.org website of the Financial Industry Regulatory Authority and check for complaints filed against brokers who operate offline and online.
You should also spend time checking with state and national licensing and monitoring agencies and the Better Business Bureau. Failing to investigate a company before investing is probably the number one reason people find themselves involved in disreputable business. And sad to say, many people make it easy for schemers to steal their identity by freely giving out personal information.
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have you thought of travel it is a trillion dollar a year industry and getting bigger every day combine that with home business which by the way is on the rise too and you got a winner just keep looking till you find what is going to work for you and it is possible to make what you want to
The bank can give you a letter to send to your creditors stating that you closed the account as a result of identity theft and fraud. When you discovered the identity theft, you should have filed a police report and sent a copy of that report to each of your creditors as well as the 3 credit bureaus. That should clean up your credit.
Well very complicated situation but not the unique one. There has been many cases like that and unfortunately there are no strict laws against it crimes. In this case the only option is to contact the nearest police station and file FIR. Another problem is the time gap. You must have reported it earlier. But it's better late than never. Attach all the related documents like the receipt of speed post and any other docs if u have……
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I’m wondering, if in fact it wasn’t the BANK that said it was a good check that they are the ones that had a hand in the originally cut check that wasn’t, since that would mean they wouldn’t only get every bit of the money in someone’s bank account, but they could attach overdraught fees. I mean, it was the banks that issued the subprime loans that cost the housing industry to collaps nationwide.
Quebec’s financial services regulator is looking into what it believes may be a Ponzi scheme run by an unlicensed securities adviser.
Idk, I kinda feel okay about people with a history of mental illness being screened from certain jobs. Depending on the extent of the illness of course. I’m not sure why we dont just have certain levels of background check. Why should it be all or nothing?
very important vid 5 stars all the way.
If you define "big" by the number of participant payors then obviously SS wins.
If you define "big" by the size of individual contributions then Madoff wins.
If you define "Ponzi Scheme" as an illegal act then Madoff qualifies and SS does not.
I felt ripped off during the years I was taxed(still am taxed for it) but now that I am 66 and collecting SS I don't mind it that much and even have come to like getting a check regularly.
What gets my goat is that I paid into it for all those years yet the disabled immigrants who just got here from elsewhere, and do not yet speak English are getting a benefit also !!!!!!!!!!!!!!
No wonder the world considers Americans morons!
FRAUD in Alaska King Counts?? via
Dont pay any fucking mind to this. Spitzer is sharp guy who has always done right in his professional capacity whether it was as an attorney or working for the SEC, or even as governor for that matter. When it comes to his work, the guy is all business, and he gets business done.
New "investors" aren't due to receive a return for a year, by which time several dozen more mugs have signed up. Eventually, to generate any income, the scheme needs to have more people paying in than there are in the entire community, at which point the scheme collapses
Overall Job Purpose Drive fraud prevention strategy , policy, risk and control framework and standards for Online channels to maintain fraud losses within risk appetite across BarCorp estate Key Accountabilities & approximate time split (%) Define the fraud prevention strategy , policy, risk and control framework and standards for Online channels across Barclays Corporate New Markets countries Define the online fraud detection systems strategy for Barclays Corporate both in the UK and in New Markets countries and agree roadmap with Product owners, in country Principal Risk owners and Heads of Fraud Management; support product owners and in country teams in building …
If you have FULL HEADERS turned on in your email client you can forward them to
If you know how to do a WHOIS / Traceroute you can take the X-Originating-IP which is what abuse departments need to track the offender and pop that number into a program like samspade (www.samspade.com) and it will do a lookup on the IP address and tell you what ISP it is coming from… usually they will have listed their address to forward abuse emails to.
You can also send it to your own ISP's in the hopes that they will block the address at the server.
Lastly, add it to your spam list.
Whatever you do .. do not reply to the emails or you will just keep getting more and more of them.
good luck.
Overall Job Purpose Drive fraud prevention strategy , policy, risk and control framework and standards for Online channels to maintain fraud losses within risk appetite across BarCorp estate Key Accountabilities & approximate time split (%) Define the fraud prevention strategy , policy, risk and control framework and standards for Online channels across Barclays Corporate New Markets countries Define the online fraud detection systems strategy for Barclays Corporate both in the UK and in New Markets countries and agree roadmap with Product owners, in country Principal Risk owners and Heads of Fraud Management; support product owners and in country teams in building …
What a scam.Did you know that he first person to collect social security benefits Ida Mae Fuller contributed 24 dollars into the system over a three year period.She made 24 dollars a month,she received 22 dollars a month after retiring at the age of 65.She lived to be 100 years old and collected 23,000 dollars.Now that was a good deal especially in 1940.Pays to be at or near the top of the pyramid.The government is full of scams.How about the Federal Reserve,Woodrow Wilson later apologized for ruining the country.That has to be the biggest.It was done over night when many senators were away for Christmas.Jefferson warned us of this.The average age of great civilizations is 200 years,each of this civilizations has gone thru this cycle;from bondage and despair to spirituality,from spirituality to courage,from courage to freedom,from freedom to prosperity and abundance,from prosperity to selfishness,from selfishness to apathy,from apathy to dependence,from dependence back into bondage.
Shut the fuck up. I’m guessing you spend a lot of time behind your computer, because in person you’d get your sloppy mouth punched closed.
Check this one out: MaverickMoneyWorks.com
It's definitely not a scam and unfortunately it's not free. It’s under a $100, but unlike any other online job, you get hours of training through videos on how to be successful in creating a online business and they have 24/7 live email and phone support. Check out the site and see what you think.
It's like Social Security. You start with unrealistic promises to Peter Sr. Then you take in money from Peter Jr. to pay out to Peter Sr., or at least tell him it is his. Then you take in from Peter III to repeat the scheme to Peter Jr and Peter Sr. Along the way you increase the promises and the payouts. You also use the original funds for alternative purposes whether it is roads or a yacht. Last one in, or at least the last ones not, out get burnt.
Yes. A lie for the purpose of gain is fraud.
I hope it is going to get better once the new FTC regulation start on Dec.
http://www.ftc.gov/opa/2009/10/endortest.shtm
No, it's only legal for the government to do it.
that guy is a bear deterrent
My blog update on:
The aftermath of a ponzi scheme is a lawyer’s dream. Large amounts of money sit around with no clear owner. The government gets involved. Lots of people are upset and want to sue. Our Minnesota version (Tom Petters at $4…
you can get tips about goverment here
http://www.ebookslife.com/grant/index.htm
that guy would make a SUPERB muppet
thats so unfortunate, because clearly, she has lost her money. Many of these scumbags are geting away with these crimes…..Lets do all we can to fight it. Presently, i write a column in my sch magazine about these scams and how to identify one. Im a Nigerian(though living/schooling in Korea) as well