If it sounds too good to be true, it probably is
I read in this week’s newscast of a young couple here in the ACT that were duped with a fraudulent investment scam over a period of nearly 12 months.
They invested their savings in what appeared to be a highly lucrative and bona fide investment in Bitcoin that had tripled in value over the past year only to find that when they had no further money to invest, the returns (scammed from other investors) stopped as well.
Typically known as a Ponzi scam after Charles Ponzi who through the 1920’s made him self famous by luring people into investing their money with an initial high return. The investor becomes confident that the investment is strong, they take out bigger loans to and oftentimes encourage friends and families to invest as well. Once the scammer feels they have got most of the funds from the hapless investor/s they pull the plug and take the money.
The scam is just one of many that is impacting tens of thousands of people daily and it is only likely to get worse, the internet will make sure of that.
We all need to be on guard against these scams. Deception abounds and it comes in all shapes and disguises with a guarantee there is one just waiting for you. Remember the old adage – 'If it sounds too good to be true, it probably is'.