There is no easy money, just like there are “no free lunches”. But people do become victims of “double your cash” or “earn a lifetime income” schemes. How does one avoid these online scams? Nothing comes free in this world and that includes money. Hard work is the only way you will ever earn legitimate money. These “get rich quick” online scams are not legit, and nor do they work.
#1 Check Interest Rates
If someone promises to double, triple or even quadruple your money, the first thing you should do is check the interest rate being offered by banks. Banks pay some amount of interest a year on savings bank accounts. Another sure sign is the interest rate of safe debt instruments. If the scheme exceeds these, you can be sure it’s one of the online scams.
#2 Subject Schemes to Careful Scrutiny
Anyone or any scheme that offers you more than the amount you can legitimately make should be surveyed with careful scrutiny and studied deeply before investing one’s hard earned cash. Another important point is that the scammers generally lure friends or relatives into the scheme and spread the net wider. All online scams are generally put across as a “great idea” by unsuspecting friends or close relations.
#3 What You Can’t Understand Is Fishy
Another rule in making investments is that if you don’t understand how the scheme works, don’t sink money into it. One of the chief features of online scams is that they promise “guaranteed income” and fast and massive returns in next to no time at all. Pyramid or Ponzi schemes (so named because they were perpetuated by Charles Ponzi, a 1920s swindler) involve paying upfront charges for joining a scheme or buying a product or service.
As more people join the scheme, the money to early investors gets return. But the scammer generally runs out of time and decamps with investor cash once a substantial sum builds up and new investors lose out big time.
#4 False Claims= Big Scam
Agents, distributors, panelists and customers of such pyramid scheme companies will make every effort to entice you with claims. Lifetime income and royalties will be used as bait to lure people. When a binary income fails, the online scams have found their target– your cash.
Often, sellable brand ambassadors are engaged to sell the company to the media and the unsuspecting public. Once someone begins to get involved, he/she will advocate it, drawing more people into the scam.
Not only do such schemes create a problem for the company, but also for the company. These products or services which the pyramid company aims to sell are not at all beneficial or valuable. These companies form a money chain, expanding with a global footprint and raising money selling services or products that are useless. Roping in trusted people, they create a reward matrix based on luring new buyers into the scheme, sometimes ruining people’s financial status to the tune of millions. The worst part? The victims not find out till it is too late. Therefore, the need arises to protect yourself before the damage can be done.