Investment and Ponzi

Investments and Ponzi schemes are one of the most common types of scams, and they’ve taken in millions of Americans who aren’t aware of the warning signs.

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Investment and Ponzi

You know that your investments are a big part of your financial picture, but sometimes it can be hard to know whether you’re making smart decision. You’ve probably heard that one of the first things you should do when you start investing is diversify your portfolio—trust us, we get it, there are so many different ways to do that! That’s why we’re here today to talk about Ponzis.

Ponzi schemes—named after Charles Ponzi, who ran them between 1919 and 1920—are a type of investment fraud where money from new investors is used to pay off returns promised to previous investors.

You might think this won’t happen to you, but even some of the smartest people in the world have fallen prey to these types of investment schemes, simply because they were too good to be true. This is why diversifying your portfolio is so important: if you were only invested in a single scheme that turned out to be a fraud, you could lose all of your money.

Choosing The Right Investment Platfrom

Investments are always a gamble, and if there’s one thing we’ve learned by being in the investment game for a while, it’s that you can’t trust everyone.

When you’re looking to invest, make sure you check out the different options and research what you’re getting into. One way to protect yourself is to ask your potential investment partner about their SEC registration. This is an agreement where companies register with the SEC and sell securities to the public. Generally speaking, if your potential investment partner is registered with the SEC, they’re less likely to be a scammer.

It’s also important to make sure that whoever you’re investing with isn’t promising crazy returns on your investment. If someone promises a return that sounds too good to be true, it probably is! The old adage “if it seems too good to be true, it probably is” holds just as true in investments as anywhere else!

Another thing to keep an eye out for when investing are Ponzi schemes. These are when investors take money from new investors and pay off previous investors before becoming insolvent. In most cases, they won’t tell you this, so it’s important to make sure that whoever you’re investing with has been around for a while and has a track record.

How Investment and Ponzi Works

A Ponzi scheme is an investment system that promises large returns that aren’t actually possible. It’s been referred to as a “pyramid” or “chain” letter, because it relies on new investors to keep paying out the old ones. The scam works by offering existing investors regular payments from their investment. These payments are actually just money given by new investors who are also looking for big returns. 

The reason these schemes can last for such long periods of time is because the money paid out to investors comes from new investors, rather than the actual profits of the operation. The original investor then pockets all or most of the funds

How To Not Fall For Investment and Ponzi Scam

Ponzi schemes are one of the most common types of scams, and they’ve taken in millions of Americans who aren’t aware of the warning signs. They’re often disguised as legitimate businesses, and they can seem like a dream come true—until you lose your money, that is.

Here are some things to keep in mind if you’re offered an investment:

  • Check with your state regulator before investing in something unfamiliar. They can easily tell you if the person or company trying to sell you an investment has the appropriate license or registration and whether they have had disciplinary problems in the past. If you’re dealing with someone unregistered through a website that does not offer contact information, remember that scammers often use fake names, addresses and phone numbers on their websites and don’t hesitate to change them regularly to avoid being caught.
  • Ask for written information about every aspect of an investment opportunity. No matter what someone tells you, ask for written details about the investment.
  •  Check the credentials of salespeople, brokers, and investment advisers—as well as their disciplinary history—before investing.
  • Be wary of the “too good to be true” promise of high returns with little or no risk. Don’t give in to pressure to make an immediate decision

  • Find out how long the business has been around! Even if it seems like a great opportunity, don’t fall for something that’s new on the scene without doing your research first.
  • If it’s a Ponzi scheme, they will often ask you to spread the word and bring in more investors. Don’t do it! This is a huge red flag.
  • Ask questions about the investment—and then ask more questions! For example, if someone promises you a high return on your payment into a gold mining operation overseas, ask them exactly why that investment will pay off so well (and then follow up by asking them for proof).
  • If the offer seems too good to be true, it probably is. Remember: investing comes with some risk. If someone promises you an unusually high return with very little risk, don’t buy it.

Scammed By A Ponzi ?

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Report Scam

If you were scammed out of your money by a Ponzi scheme, we’ve got some good news for you.

We’re not going to tell you that it’s not going to be an uphill battle, or that it’s going to be quick and easy. But we WILL tell you that there are things you can do to try to get some (or all) of your money back. And that’s what we’re here for!

If you were scammed, the first thing you should do is file a complaint with the Federal Trade Commission (FTC). The FTC is a government agency that helps consumers recover their money from scams. We recommend filing a complaint with the FTC because they will give you clear, step-by-step information on how to go about recovering your funds.

The most important thing to know before trying to recover your lost funds is that Ponzi schemes can take many different forms, and thus there are many different ways in which they can be recovered.

A common way in which Ponzi schemes are recovered is through restitution. In these cases, the FTC will work with the companies involved in the scam to have them return some or all of the money they have taken from consumers.

If you’ve been scammed and can prove it, you may be entitled to some of the recovered funds as part of a victim compensation fund. We recommend contacting organizations like Crime Victims United or the National Association of Crime Victim Compensation Boards for more information about how to claim your funds.

Another option is to work with a company like Chargebackpros. As a financial services company that specializes in fraud recovery and management, we’re experts at recovering money from bad actors on behalf of our clients. Here’s how it works: We review your individual case and determine whether or not we can help you recover any funds. If we think we can help, then you pay us a small fee (between 10-20%). Once our investigation is complete and we’ve determined that we can indeed help you recover your money, we get started! We’ll contact the bad actor(s) and demand that they return your funds. This often involves multiple conversations between our team and the perpetrator(s), as well as legal action if necessary. 

Let the Journey To Recover
Your Money Begin

Chargeback Pros is here to help you fight back against Ponzi Investment scams.

If you’ve been scammed by a Ponzi Scheme, we understand how difficult it can be to recover your losses. Your first step should be to contact the relevant authorities who can help you track down the person who scammed you, and then seize their assets.

But sometimes that’s not enough, and you need to get creative. Here are some of our favorite ways to recover your lost funds.

  • If the scammer has a bank account, it’s likely that the institution is fully aware of the scam’s existence, but their primary concern is making money from their customers’ deposits. 
  • The scammer also may have an extensive social media presence, which they’ll use to lure in new victims and make them feel like they’re part of a community. You can report their posts or make fake accounts to write negative reviews on their posts or business pages.
  •  If you have associates who were also scammed by the scammer, consider pooling your resources together so that you can hire an investigative team to track down the person responsible for stealing your money. This technique works
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My experience with chargebackpros.com was excellent in getting my money back from a scam company called Expert Investment ltd. I can confirm they will do their best to get your money back and always put their clients first.

Emery Hudson
Investments and Ponzi Scam Victim

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