14 Sep 2019

Beware of wonder investments

You must have heard of some investment schemes springing up outside the formal banking system, luring people with the promise of interest over a short period of time. This investment offers as high as 30 to 100 percent interest per month on investments.

As claim by these wonder banks, their aim is to help people realize capital gain. They are owned by an individual or group of people and they claim to be engaged to international bodies.

This type of investments scheme are not new, it was once in 1920 operated by one Charles ponzi in 1920 in Boston, luring depositors with 50% interest every 45 days and what happened, more than 10,000 people lost $9.8 million. And during the time of Ibrahim Babangida banking deregulation days, many of these scams sprang up.

Since most people are greedy when it comes to wealth acquisition,these initial payouts serves as incentives,luring more people to the scheme. They are simply robbing peter to pay paul.

The swindlers is easily able to meet the demands of old investors from the deposits of a growing number of new investors.

The proprietors of these investments will disappear when they feel enough money to have been collected and the business may no longer be sustainable owing to a decline in the number of clients .

This is the stage the wonder investment are experiencing now, though some investors are still depositing their money with them . but they are having a bad day as they are finding it hard to pay their depositors. Some of them have begun to relocate or closing of offices.

Mmm Nigeria is an example of wonder investment, this type of mouth watering return on investment is programmed to fail,leading to weeping and gnashing of teeth for greedy investors

Be wise

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