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Say ‘no’ to get rich quick schemes.


How about getting some money quickly? Eh ? :)

Think about it –

Why should someone pass you the trick to make big money?

How can someone create a 500% or 1000% return in a year?

If they really knew the trick, don’t you think that they would have worked for themselves , make a lot of money and try to be with the likes of Mr. Bill gates and co?

So the advice is straight- Get rich quick schemes don’t work. There is no need to try such a scheme. Such schemes operating around the world are illegal. If you’re pressured by someone close , politely reply to them that it is not possible to join and what they are trying to spread is a fraud scheme. All scams that have happened in the past are known to have spread through the link of near and dear ones. Such schemes are a loss for the country. They distract people from doing productive work. Some countries have legally banned such schemes.

 Why do we get attracted to such schemes?

There are many reasons – we get attracted to such schemes because ,

  • Human Nature : We ‘re greedy and lazy.  And as a result, we fall into such schemes.
  • Convincing  evidences: The guy who introduced the scheme , convinced you about the genuineness by showing some certificates or bank accounts.
  • No start up costs : It costs very little to start, hence you’ll take the risk.  It is easy to operate , hence you’ll think it’s worth it. You can join the race with a subscription and then it works through word of mouth. So, you think there nothing much to lose. As more and more people join on your behalf, you get rewarded, if you don’t get people to join, you’ll let go that small amount.
  • Financial illiteracy : These schemes are marketed aggressively and it’s generally hard for an amateur to crack their arguments in favor of the schemes.

This is how a typical  scheme would operate:

A representative appears in front of you and would introduce the scheme with proofs of money pouring into his bank account with little effort. He would say that he was working in a company and with the limited salary, he could not make both ends meet but now, after making this ‘smart choice’ he has earned a lot of money and  self respect. He has achieved what everyone of us dream- financial independence.

The scheme typically would be to buy some products or tour packages for a small fee. Then, you’re supposed to pass on this message and bring in more people.As more and more people join on your behalf, you become a team leader and starts getting a commission based on the number of people that has joined the scheme.

The moment the company doesn’t get new recruits or agents, the office of the company disappears. The promoters abscond with the huge amount of money they compiled through subscriptions and the money of a wide group of people who joined last is lost.

Easy  money schemes around the world.

How it started –

These types of investment schemes are called ‘ponzi schemes’. The name is derived from the name of Charles K Ponzi, who masterminded the first ever fraudulent investment scheme.  He claimed that he could make 400% returns from arbitrage between Italy and US markets by investing in postal reply coupons. Needless to say, the scheme was a fraud one and people lost millions of dollars.

Read the detailed list of ponzi schemes from around the world at wikipedia page here.

How to spot a get-rich-quick scheme? 

  • Such schemes offer to make you rich in a matter of months without any hard work! In most of the cases, all these investors have to do is to bring in more and more investors. Minimum effort , maximum results!
  • In all probability the ‘corporate office’ of the company will be in a distant place from your country. They will show you photographs of the overseas office and also the official website and phone numbers.
  • They will pressurize you to join quickly so that you will be on top of the many others who will be joining the scheme soon. That way, you stand to benefit.
  • If you are still not convinced, someone may actually appear in front of you who would claim that he was working with a bank or some other organization but now, after joining the scheme ,  has left his job-  thanks to the “financial security” and “financial independence” the scheme has given.
  • All the meetings of the company will be hosted in big venues with lavish dinner and celebrations.
  • Most of these schemes will be advertised as a ‘risk free’ investments, and some sort of personal guarantee from the promoters would be given.
  • Sometimes the whole game starts with a simple sms to your phone  declaring that you have won millions in lucky draws conducted somewhere (?!!) by somebody (?!!) and in order to claim your money, all you have to do is to put some money as ‘processing fee’ to a bank account.

On searching the net, we have found countless illegal get rich schemes operating in India and abroad. The Reserve bank of India has published long list of companies who are engaged in ponzi schemes in India. The point is, It’s your hard earned money and you just cannot put it into some illegal business expecting big profits. The onus of putting your money in right investments is on you.  If you cannot understand this simple fact, nobody can help you. Nobody can double your money in few months.

As the saying goes – “If It’s something too good to be true, it probably is” .

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