There seems to be a new and easy way to make money that has caused a stir on social networks and many are calling it a big scam. The pyramid scheme is such that the people at the top earn money at the expense of the new members and investors and reports are that this pyramid type scheme may have already found its way into Belize and the Financial Intelligence Unit is now warning Belizeans to beware of this scam.
In a release issued by the FIU they bring to the attention of Belizeans the potential treat that exists with this new scheme. According to the FIU this scheme includes a person who induces other persons to invest small sums of money by promising them a substantial return in a short period of time. The scheme crumbles when the promoters cannot persuade enough victims to pay into the scheme to cover all the promised returns.
This new age scam has been reported in several countries including the US where the scam is called ‘women helping women’, in which women are invited to parties in beauty salons and residential homes and promised the opportunity to make big money for themselves by making an initial starting contribution. But authorities report that over 90% of partakers will lose. This pyramid type scheme can also be found in places like Mexico where it is called ‘ Flor de la Abundancia’ and similar to other schemes investors make contributions under the philosophy that "if you give money, you will multiply ', and the organizers encourage small investors to work in a team and be patient and they will receive a big payout.
Here is how it apparently works.
Recently our news room has been receiving several calls from people here in the north claiming they have been contacted to join the pyramid. They are told to pay $3,000 and will receive $24,000. While we understand that the scheme has been in Belize for more than two years now and some people actually got their money, it seems that over the past months the scheme has been converted into a scam. Callers told us they were invited to join…paid the $3,000 but never received the promised $24,000.
The FIU warns Belizeans to be cautious of investment opportunities that offer extraordinary rates of return and that require you to recruit subsequent investors to increase your profit. They also advice that you verify the legitimacy of any person before you enter into any investment with them.
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