An ex fraudster in America gives his top tips on how to avoid being a victim of a Ponzi scheme.
I have dealt with victims of scams who have suffered losses as a family. One member has been taken in and through thinking the investment is a great opportunity sold it's 'merits' to family members. It is not always the fraudster who gets to a victim directly. Any investment opportunity needs to be taken with caution and independent advice.
Q. What should people do to avoid falling victim to Ponzi schemes?A. Three ways to avoid being scammed:• If the offer is too good to be true, don’t trust it. Don’t allow your ego or desire for great gain to cloud your judgment when it comes to doing due diligence.• Have all investment opportunities reviewed by an independent financial professional as part of your due diligence and review documentation carefully for verifiable external methods of proof of existence.• Trust no one completely. Most frauds (Ponzi schemes) are perpetrated against those closest to them, so when a close friend says, “I’ve got a deal you’ve just got to see,” be careful.