Society is facing a rising tide of crime, corruption, and leadership failures. The author emphasizes the need for society to stop accepting these detrimental trends. As more investors fall victim to fraudulent schemes like Ponzi and Pyramid scams, Roshan Jelal provides insights into identifying red flags.
To protect themselves from investment fraud, investors must stay vigilant and be aware of the warning signs associated with these schemes. Ponzi schemes promise high returns with little risk, funded by new investors’ money. When the flow of new investors dries up, the scheme collapses.
Key tips to avoid falling into such traps include being cautious of unrealistically high returns, ensuring investments are registered with regulatory authorities, and verifying the legitimacy of investment professionals. Pyramid schemes, which rely on recruitment, should also raise red flags for investors.
Understanding these warning signs and conducting due diligence can prevent individuals from becoming victims of financial scams. By educating themselves and staying alert, investors can safeguard their hard-earned money from fraudulent schemes.
Roshan Jelal, Head of Fraud Risk Management at FNB Commercial.
Disclaimer: News24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. News24 encourages freedom of speech and diverse views.