Sometimes in the first week of August, I got a Facebook message from a close village mate. She was asking if I want to join a lucrative investment program, which turns out to be a scam later.

I was curious. I instantly called in her mobile, and asked all the questions I have in my mind about the investment.

All the answers she gave me signal the investment to be a Ponzi scheme. However, I didn’t reject outright. I wanted to know more!

How Everything Started For This Scam

To set into the context, she is a civil servant working under the Ministry of Health – National Referral Hospital (JDWNRH).

I also knew she took a consumer loan of 5 lakhs and borrowed 1.5 lakhs from her relatives and invested 6.5 lakhs.

Initially, she told it’s an e-commerce having business operations in more than 10 countries making me assume it an affiliate marketing.

But she was so adamant about not telling me the name of that company. On asking repeatedly, she disclosed it’s Global E-commerce.

I tried browsing its information online. But I couldn’t find one, specifically. I wondered if it could be one of those e-commerce startups.

She wasn’t telling me anything. Instead she was asking me to signup for the introduction meeting to know everything about it.

However, the meeting was all about enticing success stories (not sure if they were actually true) and setting my goals.

I asked the host (a Bhutanese woman in Australia) all my questions. She told me I must first deposit my membership fee.

Signals of the Ponzi / Pyramid Schemes

There is no information of its office address, founders, capital structures, annual reports. Nothing. Whatsoever!

The membership fee of Nu.650,000 (minimum) is to be deposited in the account of a Bhutanese member in Australia, who shall then deposit it in the company’s account in AUD.

The lady was so defensive when I told that I will deposit my fees directly only in a bank account of the company.

It was confirmed. They were avoiding the mainstream banking system to be out of governments’ investigation radars.

The lady was saying I can double my investment within few months; too good to be true in all senses!

How to Avoid Becoming Victim of Them

In such Ponzi scheme, usually it would be our friends or relatives who will introduce us into it.

Some of them might have sensed it all. Whatsoever, they will be forced to introduce new members to get returns.

You must know that if returns on investment is tied up with the number of members you introduce, it’s almost certain to be a scam.

If there is a membership fee, better to avoid it. In such scams, the returns they promise will be unrealistically very high.

People become victims of such scams due to desire for more. You must know nothing will be free and easy.

I feel sorry for my village mate. She could have exercised her conscience or at least ask someone who knows it.

CCAA categorized Global E-commerce as an illegal pyramid scheme. She won’t be able to get her investment.

If an investment looks too good to be true in your rational sense, it would be safe to avoid. Greed bets what you have for illusive returns.

Have you come across such scams? How you realized it and could avoid becoming a victim? 

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