Monday, March 2, 2009

How to Identify Scam?

1. Does it offer you very high Return of Investment?
-> example.. a capital of $200
-> Bank -> 4%-7% - Return of Investment Annually -> $8 - 14$
-> Funds -> 10%-20% - Return of Investment Annually -> $20 - 40$
-> Partnership -> 20%-30% - Return of Investment Annually -> $40 - 60$
-> looking at the examples if they are offering you a Impossible Interest rate that would be a scam
-> 10%-20% monthly interest = 140%-240% annually -> Very Imposible

2. It offers Pyramiding Scheme
-> Does membership entitles you to recruit many members, wherein the more member you recruit the more profit you get at a very high interest rate.

3. Ask Questions.
-> Where does my capital go?
-> What business are you in to?
-> Where did you get that high interest rate?

4. Remember !!!!
-> The higher the Return the Higher the Risk

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