Illegal Ponzi and Pyramid Schemes as per FTC explained in everyday language

Illegal Ponzi and Pyramid Schemes as per FTC explained in everyday language  by Peter Mingils on Building Fortunes Radio. 

Are you familiar with Ponzi schemes and pyramid schemes? These fraudulent investment scams can be devastating for unsuspecting victims. Let's take a closer look at what these schemes entail and how to avoid them, using language from the Federal Trade Commission (FTC).

A Ponzi scheme is a type of investment scam where returns are paid to earlier investors using the funds of newer investors. The scheme relies on the recruitment of new investors to generate returns for older investors, without any legitimate business or investment activity taking place. Ultimately, the scheme will collapse when there are not enough new investors to pay earlier investors.

A pyramid scheme is similar, but involves recruiting participants to invest in a product or service and then recruit more participants themselves. Participants typically make money by recruiting others, rather than from the sale of the product or service. Like Ponzi schemes, pyramid schemes eventually collapse when there are not enough new participants to sustain the scheme.

Both Ponzi schemes and pyramid schemes are illegal and can result in severe financial losses for victims. It's important to be vigilant and do your research before investing in any opportunity, and to report suspected scams to the FTC. For more information, visit www.ftc.gov.

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