MANY people in our communities are solely dependent on social grants and just cannot make ends meet as the cost of living keeps rising.
People are desperate – and this makes them vulnerable to criminals and scams.
SABRIC, South African Banking Risk Information Centre, urges consumers to be sceptical of any investment scheme that seems too good to be true, to prevent being deceived by so-called investors.
According to SABRIC, in South Africa, these schemes generally meet the criteria of either a traditional Ponzi or Pyramid scheme.
Both schemes see returns generated for earlier investors through revenue paid by new investors, rather than from legitimate investments or business activities.
At the point where there are more existing investors than new investors, the scheme collapses and all monies invested are lost.…
