Tuesday, November 18, 2008,
10:27 AM
Imagine one day, someone comes to you and say, "Hey, guess what? I found this new investment opportunity, it's going to make you rich!"
You raise an eyebrow and asked how.
Then he says, "Oh, it's simple. All you have to do is give me $1000, I'll guarantee you $700 in return. That's 70% ROI (return on investments)!!! That is WAY WAY WAY more than any banks or financial institutions can offer you, more so in these times of recession!!"
"Any strings attached?" you asked.
"Well, not really, no.. all you have to do is keep getting more people in our scheme, and soon everyone will be rich rich rich!! Isn't that great?"
You were at first not to keen, but after hearing of his stories of success and his enthusiasm, you put in $1000.
A month later, he comes back, bringing you $700, together with your $1000. Great, you thought, 70% ROI. It really works!! Convinced, you excitedly put in $2000, expecting $1400 in return. You continue this for 5 months, raising your investment by $1000 every month.
So it' s $1000 in the first month, $2000 in the second, $3000 in the third, $4000 in the fourth and $5000 in the fifth.
In 5 months, you are expected to get 700 + 1400 + 2100 + 2800 + 3500 = $10,500!!!!
And you do!! Fantastic!! So now, you get greedy and want to earn more and more and more!!!
So you dump in $50,000, hoping that with the $35,000 you get back, together with a bit of loan, yay, you can get a new car!!
So you wait. 1 month, he doesn't come back with the money. Maybe he's got some problems. Never mind. 2 months. He's not here. Ok, probably some political problems in the company. 3 months. You can't contact him. He's missing from his house. 4 months. You realize he's never coming back. All your money is gone. And this "friend" of yours. He's probably on Hawaii enjoying every last cent of your "investment".
Pyramid scams are just like a Nuclear Warhead. They are very enticing deals, offering shortcuts to earning a lot without working much. And after they've made you believe such a thing exists, they draw out their knives and stab you in the back till you bleed and hurt so much, but you never die and hence, the pain does not go away.
Want to know how it works? Stay tuned for part II!!!
-FALCON, out!!
