by Charlene C

Created on: October 21, 2009

There will always be people that will become victims of Ponzi schemes for the same reason that people will always play the lottery, gamble, and enter sweepstakes. The thought of getting rich with very little to invest is something that most people crave. Whether you are gambling in the stock market or playing the tables in Vegas the motive is the same...you want to win big.

No matter how much money an individual has there is always a desire to want to make more moeny. Greed is at the root of it all. That is why Bernard Madoff, the convicted mastermind behind the biggest Ponzi scheme in American history, was able to flourish. Bernie Madoff was not extremely handsome or even as pushy as a car salesman. He had a character that was self assured, unassuming, and it invoked trust from everyone who met him.

How can you protect yourself from the Bernard Madoffs of the world? Stop being greedy. Many of Bernard Madoffs victims were highly educated financial advisers that knew better. They knew something wasn't quite right when their clients earnings continued while the rest of the stock market suffered. They chose to look the other way. How many times have you heard someone say, "I don't know how you do it and I don't think I want to know. Just keep on doing it as long as we're making money."? That's the type of mentality that allows one to be suckered into Ponzi schemes. Bernard Madoff was the King of Ponzi schemes but many people fall for schemes on much smaller levels every day.

Many Ponzi schemes are disguised as investment opportunities for an elite or special group and you would be oh so lucky if you were chosen to participate. If the returns on your investment sounds too good to be true and you can not even begin to understand how you are getting a great return on your investment while the rest of the market crashes then you need to run the other way.

Ponzi schemes are built upon greed and laziness. Wow, my money will work for me and all I have to do is relax on the beach. In reality, you will never gain anything in this world unless you put forth effort.

What are the signs that you may be getting scammed?

1. The plan promises to make a return on your money that is normally sounds too good to be true.

2. There is alot of glossiness in the presentation and fluff. Real information and statistics/numbers are hard to find

3. You have to give up a large sum of money upfront

4. It sounds like you are getting something for nothing

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