Dr. Muktesh Chander IPS
I
give you a proposition that give me a currency note of Rs.500 and I would plant
it in a pot. From this ‘seed’ a ‘money plant’ will grow and in six months the
plant will bear several Rs.500 notes as fruits, all of which will be yours. Would
you believe it? Most probably not. But a large number of people still believe
in something similar but camouflaged cleverly and beautifully. Several financial ‘get- rich-quickly’ frauds/ponzi
schemes have their origin in the basic human weakness i.e. greed, which blinds
a person disabling his/her faculties of reasoning.
Goa
has a history of such financial scams reoccurring periodically year after year.
Most of these schemes ask investors to deposit some initial amount either as
subscription fee, cost of some fancy products or as an investment. The returns promised are attractively very
high and almost impossible to achieve through any legitimate business. The unsuspecting victim easily falls prey to
such inducement. In the beginning these
schemes pay promised exorbitant high returns to initial investors from the
money received from subsequent investors.
The so called initial success and happy investors bring more investors
and the pyramid starts growing in size. When the bubble grows large enough or
unable to sustain itself the fraudsters run away leaving behind a rented
premise, hired employees and fictitious identities. Most of the times they cannot be traced
forever. Even if caught, they manage
bail and sail through the criminal justice system by spending the money of
investors on battery of lawyers defending them. Everyone wakes up after the bubble has burst
but no one cares when the bubble is growing in size. Investment in teak tree
plantation, home typing, selling of costly products/jewellery, advertisements, crypto
currencies, bio oil, emu farming, manchiyam goat farming etc. are some examples
of such fraud schemes. These products or
services are simply a carrier on which the fraud scheme rides without generating
any suspicion and giving an impression of a legitimate business. It is very
difficult for a common man, who does not have any knowledge of financial
systems, to distinguish between a good scheme and a fraud.
I would suggest few simple ways, which will save you from
such fraud schemes if only you pay a little attention. First of all choose a modest but safe return
option for your investments. Bank fixed
deposits, National Savings Certificates, Systematic Investment Plans (SIP),
Mutual Funds etc. may not give you high returns but are safer than any fly by
night operator promising you moon. Any
scheme which promises a very high return is probably too good to be true. Do not be tempted by it even if the company
has all licenses, permissions and documents to operate. Do not go by word of mouth publicity or
convincing by your friends and family members.
Do your own research and question every claim by the company. If the scheme asks for new members to be
enrolled by you for a commission or makes you sell products to new members which
you have to enroll, then definitely it is a pyramid scheme. A
Company has to earn profit more than what they promise you and also pay
for expenses to run the company. Always
ask how are they going to make that kind of profit and whether it is feasible
at all. This question itself will often
reveal the trick or fraud behind the schemes.
A little background check on the main players of the company may
sometime reveal their past criminal record or misdeeds. Learn about various ponzi/pyramid scheme
frauds from internet and you would get to know various kinds of existing frauds
enabling you to judge a scheme better. In
case of doubt ask your banker, any financial or wealth management consultant.
In
case you have a slightest gut feeling or suspicion about a scheme, leave
it. It is better not to invest in such
scheme rather than regret and repent later.
Remember a bird in hand is better than two in the bush. Now a days internet has emerged as a
favourite medium for fraudsters to operate.
You may get mail or SMS that you have won a lottery, which you never
applied for or a wealthy old person somewhere in the world has left you million
of dollars or you have got a lucrative job abroad for which you did not apply
or an unknown Facebook friend want to sent you some costly gifts etc. Control your greed and ask yourself some
simple questions. Are you lucky enough that you win lotteries without even
buying a ticket? Why someone wants to send you millions of dollars for no
reason? Why some company in USA/Canada has selected you for a job you did not
even apply for? Why an unknown person, whose identity itself is doubtful, wants
to send you costly gifts or dollars, which your own relatives or known good
friends may not gift you? Several people
have fallen prey to such frauds in Goa in past.
An army officers wife in Goa lost Rs.8,04,300/- to a so called Facebook friend
who wanted to send her costly gifts and made her pay money on the pretext of
custom duty forwarding charges etc. A girl with MA (Pharmacy) degree from Ponda
taluka Lost Rs 13,11,000/- to a fraudster who had offered her a job and made
her pay this money for Visa Charges, air tickets and other expenses. A
businessman lost Rs. 1.96 crore on the
pretext of buying cheap Pharmaceutical raw materials (Seeds). A girl from
Bardez Taluka lost Rs.15,20,200/- to a so called Facebook friend who cheated
her on the pretext of sending gift parcel containing pounds, jewellery etc. There
are numerous other similar instances you may find on internet or on news
channels. You need to use your brains
before jumping on any such scheme or offer. Use your common sense and do not
allow greed to blur your vision or rational thinking process. Seek guidance,
proceed cautiously and always remember the age old advice. Do not take chocolates from strangers and
that there are no free lunches!
