Don’t get ripped off: Learn From the FrancSwiss Scandal
The Web is an ideal place for scams just as it is for legitimate businesses. The FrancSwiss scam is one of those that created such a pandemonium, dragging a lot of big names in its operations.
FrancSwiss is a High-Yield Investment Program (HYIP) that promised a 4.5% daily return. HYIPs are investment programs that offer very high profits with a corresponding high risk for failure. HYIPs have been in existence since as early as 1919, when a man named Charles Ponzi put up an investment program that promised a daily return of 1.11%. However, Ponzi only used the new investments to pay the older investments and eventually, the program began to collapse. Thousands of Ponzi’s investors lost their money. Since the, scams have also been called “Ponzi scheme”.
Nowadays, HYIPs work online through “seemingly legitimate” sites that pay at first, then suddenly disappear without a trace.
Even after the FrancSwiss scandal, other scams still surfaced. And with the free flow of information and the openness of the Internet, we can be sure to expect more.
If you want to invest, make sure to keep these reminders in mind to avoid being scammed:
1. Know the different investment scams and how they operate.
2. Try to fully understand how the investment would work. Consult an accountant or any licensed expert if you have to.
3. Beware of investment programs offering high returns, especially if they also offer “low risk” alongside it. A high return is one that is about 2% higher than the returns offered by other established companies.
4. Always verify the credibility of the investment program. Is it registered or recognized?
5. Do not invest in a program unless you know (and have verified) who to contact, where and how to reach them, and other necessary information about the investment program. It is important that you could always check updates on your investment.
6. Don’t go for investment opportunities that require fees before you’re allowed to participate.
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