If you have recently come across a financial investment scheme offering huge profits on “risk-free investments”, double check if it’s a genuine enterprise and not a Ponzi scheme.
The Australian Federal Police has identified a company operating in Australia that was running a similar get-rich-quick scheme. The AFP says it has identified $8 million in 37 different accounts linked to this scheme, suspected to be proceeds of crime.
The company- Options Rider, busted following a tip-off from the US Federal Bureau of Investigation, promised investors a large, risk-free profits on investment.
The AFP says the scheme was being run by paying the initial investors money invested by new investors and not the actual profits. The money dried up as soon as the new investments stopped coming in.
The AFP says people should question such schemes offering high returns on investment, or that claim they have software which will do the trading and generate money or a passive income.
“Entering an investment scheme like this will likely land you with empty pockets and potentially a criminal record, as schemes like this are illegal in Australia. These schemes fall apart because they are economically flawed and unsustainable.
“Before you make any investment, you should conduct thorough checks to see how the money is really going to be made,” AFP Manager for Criminal Assets, Fraud and Anti-Corruption Peter Crozier said
The AFP is continuing its investigations into Options Rider.
According to the AFP, these are the warning signs of a fraudulent investment scheme:
- The biggest sign of a Ponzi scheme is the rate of return is suspiciously high.
- The person who tries to recruit you is someone you think is trustworthy.
- The recruiter may have already invested in the scheme and received great dividends.
- The investment rewards you for referring others.
Have you been a victim of a Ponzi scheme, write to us on Punjabi.Program@sbs.com.au
