Tuesday, April 8, 2008

PONZI! the arse out there

Ponzi
How to avoid a fraud? This problem concerns almost all participants of high yield
projects. As the HYIP specifics provides no transparency of economic transactions
dishonest dealers organize false projects and make them seem real investment
programs and then after they collect money from the clients suddenly stop their
activity.

One of the most popular forms of deceit is Ponzi. Ponzi is a classic financial pyramid
where the profit is created not due to the effective economic activity but by
attracting investments of new project participants. Similar projects are like a snake
eating its own tail. Up to some moment it looks stable as the payments are provided
with real money invested into the program by new members. However, the
impression is false. At some point there comes the stagnation and new members stop
joining the project and the pyramid breaks down. However, sometimes the founders
do not wait till this phase and get lost with all money they have accumulated. As a
rule, clients learn it when they stop getting regular interests on their accounts.

I always wonder... cant e-gold or ebullion help to catch these suckers?



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