How most financial scams work
Posted on: Sat, 10/27/2007 - 17:59
james
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How most financial scams work
OK, here's a very short introduction to how these schemes tend to work.
Person A goes into scheme for $10. Person B and C go into scheme a week later for $10 each. Person A gets $18 back. 80% "profit". B and C may get that 80% profit, they may not. The promoter skips the country with the profit.
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The only way B&C will get their money is if they recruit D&E. The schemes are quite simple.
Thanks for providing a basic explanation. That's a really good description of how these things work, for people who do not fully understand what's going on with pyramid schemes.
And clearly many do NOT understand what is going on with such schemes, or else the schemes would not succeed.
Part of the problem, and one of the main reasons these scams work, is human nature. I mean that it is human nature to want to get something for nothing, or next to nothing. Most people will get hooked by the idea, until they find they have been scammed that is.
Unfortunately it is because people are looking for the easy way to make money, instead of relying on working. They prey on the fact that people are tired of working 40 hours or more a week to have most of their money taken in taxes or used for living, and then struggling from check to check.
Nowdays people wants more money in a short time.So these type of countries take advantage of this and fool the people.
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