The Ponzi scheme has been around for a long time, even before its namesake pulled off his famous 1920’s scam. Although it has always been a popular way for fraudsters to take your money, it has seen a huge surge in recent years. What factors are present in the current economic climate to make the Ponzi scheme such an attractive and dangerously successful scheme?
As a large population of baby boomers ages, those nearing retirement are realizing their nest egg may not be enough to cover their needs after the age of 65. Ponzi schemes targeting people of retirement age are rampant because they “promise” such fast, steady returns.
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Worries About Safety and Stability
Along those same lines, people who are able to save a little money want to put it somewhere where it will safely grow. Ponzi schemes give the appearance that it is truly what it claims to be, as investors up the ladder start to see immediate benefit. The scammer “promises” high returns, giving the illusion of safety and abusing your trust.
Relying More on Friends & Family
Because the market is flooded with investment options, and because so many inexperienced investors are looking for opportunities, many people are turning to their friends and communities for advice. Called “ affinity fraud,” fraudsters are able to use that trust and desperation to their benefit, sometimes wiping out the life savings of entire church congregations or families.Ultimately, you should always be on the lookout for an investment opportunity that seems too good to be true, and be wary of ANYONE who claims they can “promise” you a huge return. If you have lost money in a Ponzi scheme, an experienced attorney can help explain your options. Meyer Wilson represents investors nationwide, and may be able to assist you. Contact us today.
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