Is somebody promising you extraordinary returns on your investment in a scheme which falls outside the ambit of the formal financial system? If it is so, then beware! It could be a trap of duping you of your hard earned money through some unregulated deposit and investment schemes.
It has been a common practice from ages where fraudulent individuals and companies have been duping gullible investors through fake deposit/investment schemes.
They have been collecting money from investors and later pay them (old investors) the money back which is collected from new investors. Once any of the investors stops paying the money, the chain breaks and the old investors are not paid their dues. This is actually what a Ponzi trap is, and such schemes are known as Ponzi schemes.
Millions of gullible investors/depositors have been robbed of their hard earned money through Ponzi and other unregulated schemes. A financial fraud committed by the Saradha Group is a constant reminder of the financial losses caused by the Ponzi scheme.
The scheme collapsed in April 2013. The Group was a consortium of over 200 private companies that was believed to be running a wide variety of collective investment schemes popularly referred to as the Chit Fund scheme. The scam caused an estimated loss of Rs.200–300 billion to the small investors mostly based in West Bengal.
It is worth mentioning that the worst victims of these unregulated schemes have been the poor and the financially…
