Consumer Commission warns against trying to 'beat' Ponzi schemes

JOHANNESBURG - The Consumer Commission is urging the public to be wary of pyramid schemes.

It says fraudsters are taking advantage of people facing financial difficulties due to the lockdown.

The commission says some are aware they are taking part in Ponzi schemes, but believe they can beat the system.

READ: Consumer Commission investigating Up Money pyramid scheme

National Consumer Commission director of prosecutions Joseph Selolo said: "Consumers or victims are simply not aware but there's also a simple reason that there's a belief that you can beat the system. If you join early enough you're able to make money before it collapses," he said.

"There are people who have this belief that they can beat the system. Ponzi schemes collapse simply because they are dependent on new money coming in.

"Bear in mind, that the originators of the scheme are not interested in giving you money, they are interested in making money."

Source
eNCA

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