Over the years I’ve come across many different types of investment schemes. Unfortunately, some of these investments have come and disappeared.
One thing i’ve noticed about these bogus investments is the stories that they use in order to suck people into these investment schemes.
The stories make these investment extremely convincing especially to inexperienced investors. These investments tend to combine wonderful stories together with putting up a good front.
They put up a good front by having big offices, big dinner & dance events, enticing rewards for investors, their own magazines and etc.
I want to share with you the top 8 wildest stories I’ve heard in hopes that it’ll help you to think twice and make better decision the next time you may come across an “amazing” investment scheme.
Story #1 – Gold Mines All Over The World: There was once a gold company that shared their story about how they had numerous gold mines around the world. They also mentioned that they have multiple offices around the world with beautiful pictures over on their website. They offered investors pre-ipo shares and told them that they have the potential to make good returns as they had plans to list in the stock exchange.
Story #2 – Winery Investment: I once heard stories of company looking for investors for a winery investment. They capitalised on the story that the value of wine will increase as wine is aged through time.
Story #3 – Coal Mine: This is the story about a company who mentioned they had a special machinery that helped transport coals conveniently from the land to ships. It was said that it was a new technology that no other company had ever invented.
Story #4 – Gold Coins: There was a company pulling investors in based on a gold coin manufacturing story. They mentioned that they buy people’s gold bars and then melt it down to make their own gold coins. They displayed fanciful numerous gold coins at their office to make it look legit. It turns out that they do not manufacture any gold coins at all. The gold coins at their office was probably fake as well (gold plated only).
Story #5 – Money board game: This is a weird one. I encountered a story on this that you’ll be able to make money when you invest money into an online board game. Let’s say the board has 12 spots, once all spots are filled you’ll earn cash and jump over to a new board. Strange.
Story #6 – Forex Traders: There was a company pulling investors in by giving them a certain percentage every single month. They made it believable by sharing the story of how they have many professional traders in another country. I’m not sure if they even had real traders.
Story #7 – Internet of things: I once encountered a company who was also selling pre-ipo shares. They told investors that they will be able to get a certain percentage every month based on their investment amount. The company painted a picture of how they were in the business of technology. That they a tech company like apple. But they specialised into developing technology for education (touch screen classrooms).
Story #8 – Betting software system (Latest I’ve Heard): It’s the story of a incredible gambling software that is able to detect the difference in the betting odds and when that happens, it’s somehow a sure win. And so i’ve heard that people are able to get 8% of their capital every month.
These investment schemes are typically known as Ponzi Schemes. This video below will help you to better understand how ponzi schemes work.
It may seem wonderful at first when you’re able to get great returns but know that the money you receive is coming from new people who enter into the investment scheme. Once there isn’t enough new people to enter the scheme, the whole pyramid falls and the ones who enter late will lose their hard earned money.
How about yourself?
What other wild stories have you heard yourself? Do share them in the comments below so it’ll help to raise awareness of such investments schemes out there.
I’m very sure in the years to come there will be more and more of these investment schemes. They will get smarter and reinvent how they pull in investors. So stay vigilant and don’t let greed influence your decision!