Hello Friend,

Illegal money management schemes are rampant nowadays so trusting someone with your money should be avoided even especially for people whom you barely know. Every year, millions of dollars are lost from hard-working honest people who have trusted some dubious organization with their money. That’s why being overly cautious and protective of your assets is a must in order to secure your finance.

Here are some tips on what you can do to avoid these illegal money schemes:

Managed Investment Schemes

These are setups where money is collected from individuals and utilized for investment purposes. You have no control over your funds or knowing where your money is being invested or to whom it is given. Cash management trusts, equity trusts, property trusts, agricultural schemes – all such schemes should be thoroughly checked before you make any decision.

Ponzi Schemes

Bernard Madoff has become notorious for his infamous Ponzi scheme that plundered billions of dollars worldwide. In such an investment scheme, money is collected with the promise of rich returns. Subsequent deposits pay for the earlier investors and the cycle keeps going. Eventually, the scheme collapses on its hollow core, and the last group of investors is wiped out. Remember it is illegal to receive profits from a Ponzi scheme and you can be liable for recovery and penal action.