How to recognize Easy Money and Fast Money Making Ponzi Schemes

How to recognize Easy Money and Fast Money Making Ponzi Schemes
Making quick money or easy money is the dream of many a people and organizations and due to this ambition, lots of schemes are launched. Everybody wants to be rich and famous and for that various schemes have been introduced. In the past quite innovative schemes like chit funds, plot ownership, teakwood scheme, collective money schemes have been devised to make easy money.

Keeping the trend going, one such scheme has been introduced in the shape of Freedom 251 mobile phone scheme which has taken the world by storm. This appears not only fishy and unbelievable but also such ponzi scheme will make the owners of the company rich and famous.  However the scheme also exposes the vulnerability of the general public.

Now whats the scheme all about….?

One non descript company appears out of nowhere with an offer for selling a smartphone on an unbelievable price of Rs 251 with features which can make many other existing smartphones look pale in comparison. The offer was to book the phone online for an initial period and to be delivered after some months or so. To make it appear transparent and genuine, popular and senior political leaders and ministers were invited to launch the scheme.

Lacs of people hit the website of the company to book the phone online and the successful buyers were assured to provide a link for submitting personal details for deliver and payment later.

How the company will dupe the buyers..?

The company will collect money form lacs of people with a promise to provide dirt cheap smart phone at the cost of Rs 251 after four months of booking. General public with the curiosity of owning a smartphone would not mind paying such a paltry sum. The financial mathematics of the scheme by the company is like this:

Cost of the phone- Rs.250
No of bookings- 50 lacs
Total money collected by the company- 50lacs*250=125 Crores
Period of delivery-6 months

(All figures approximate)

Now if the money collected by the company is deposited in the bank with a minimum interest rate of 6.5% for 6 months, the company will earn approximately 4 crores interest  in 6 months without any hitch.

This can be understood by the following illustration:

Even if due to any reason, either by Govt. action or other regulating agencies, the company is forced to refund back the public money, still it will retain the interest earned on the deposit amount. And keeping in view our legal system, it will take years for people to get their money back.

There are instances that Owners and CEOs of many such companies are not caught and not proved guilty for long time. You must be knowing the famous people who have not refunded the public’s money even after ordered to do so.

Therefore, before subscribing to such schemes it is advisable to go through the details and viability of such dubious schemes. One needs to apply their own mind and take necessary precaution in money duping schemes.

Even though such ponzi schemes have come and gone but poor people still get lured by such money making schemes whenever they are launched.