Beware of Ponzi schemes

"Get rich quick investment opportunity!" 

When something sounds too good to be true - it often is. 

Ponzi schemes are presented as opportunities to make money fast however investors are paid returns from their own money, or from money paid in by subsequent investors. As there is no actual investment scheme and the scheme will inevitably collapse and you will lose your money.

Fraudsters will first advertise for investors offering extraordinary returns in a short space of time. After receiving the initial promised returns on their investment, the first investors start to spread the word to family and friends. In this way, the scheme gains credibility. Because the money isn’t invested in any kind of investment vehicle, there are no actual profits.

Ponzi schemes are created for all levels of income. Typically, the fraudster will vanish with investors’ money, so when the system eventually collapses, later investors receive nothing. Because Ponzi schemes are unauthorised and make no profits, you are very unlikely to recover any lost money.

Stay safe:

•    Remember, there is no such thing as a ‘guaranteed risk-free’ investment. 
•    Be wary of hard-sell techniques – don’t be pressured into making rushed decisions.
•    Be wary of things such as glossy brochures, dazzling language such as ‘high yield investment programme’, mock websites and extravagant venues. Investigate the company’s status and contact details yourself.
•    If you’re not sure the company you’re investing in is real, it could be fraud. Check the Financial Conduct Authority (FCA) register before investing. www.fca.org.uk/scamsmart

#LincolnshireAgainstFraud – joining forces to help protect people in our county.