Tuesday, July 5, 2016

Bob Jain & The Details Regarding Ponzi Schemes

regarding Ponzi Schemes
By Paul Martinez
Anyone who invests money should know where it's going at all times. Bob Jain and other authorities in the financial world can agree, which brings us to the topic of Ponzi schemes. While you might have heard this term thrown around a time or two, its specific meaning might be unclear. In order to become more familiar with this form of fraud, as well as how to avoid it in the future, here are a few details you should make note of.

For those who do not know, Ponzi schemes are among the most unsteady scams in the world. Essentially, they're run with the purpose of promising a group of investors high returns. However, these returns are paid with the income that was brought in from a previous group, which creates a cycle. What usually happens, with these particular schemes, is that they collapse due to the inflow of cash not being able to match up with the outflow.

Ponzi schemes fall apart for a number of reasons, but perhaps the most notable is the recruitment of investors. Anyone who is familiar with this form of fraud can tell you that when these scams persist, it becomes increasingly difficult to find new investors. As a result, Ponzi schemes lose their funding, resulting in their eventual demise. It's still important to know how to avoid becoming a victim of this form of fraud, which is where advice from Bob Jain CS can come into play.

One of the biggest red flags of Ponzi schemes, according to authorities like Bobby Jain CS, is the secretive nature of the opportunities presented to you. When you invest money into anything, you should have a general understanding of how it operates. If these details prove to be difficult - if not impossible - to obtain, chances are that they are on the shady side. Needless to say, your money would be better placed elsewhere.

As you can see, it's entirely possible to avoid becoming involved in Ponzi schemes. After all, the money you have in your bank account is valuable, so it should be used wisely. One of the poorest ways to take advantage of it is by investing where it shouldn't be. By keeping your head on a swivel and staying aware of opportunities that can be best described as "shady," you will be better off as a result.


About Unknown -

Senior Manager and fraud examiner in mining industry. Head the investigations related to fraud. My role includes driving the culture of integrity And ethics within the Company by conducting regular fraud investigations.

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