This Ponzi crypto app dupes people by offering high returns

 A Ponzi cryptocurrency app is now luring in many bank customers and scamming them by promising them high returns. To safeguard customers, Canara Bank has released details and information on Ponzi scheme.

How Ponzi crypto app dupes people by offering high returns

According to the information released by Canara Bank, here are points to note on how this ponzi crypto app dupes people by offering higher returns.

A ponzi scheme involves persuading the public to invest in fraudulent, seemingly lucrative, schemes.

The life savings of many people were wiped out after they invested in a crypto app which had promised daily and monthly returns.

The crypto app which claimed to be a US-based firm, had opened two Telegram groups which had more than 19,000 members where they spread their investor base.

The app lured investors by offering huge returns. At the beginning stage, the app even let investors withdraw their profits. It also offered heavy bonus to those who got more people to invest in the app.

Later there were no option to withdraw investment funds and the app itself vanished from app stores and ceased to function

Most Ponzi schemes have common attributes such as :

• Promise of high returns with minimal risk: If someone offers an investment with high returns and few risks, it is likely to be a too-good-to-be-true deal.
• Overly consistent returns : Investors should always be skeptical of investments that generate high returns consistently regardless of the fluctuating market conditions.
• Unregistered investments: Before rushing to invest in a scheme, it’s important to confirm whether the investment company is registered.
• Secretive, sophisticated strategies: If you have no idea how a particular investment scheme works, it is better to avoid any 'investment' plan that offers higher returns from such schemes.

What is 'Ponzi scheme'

Ponzi schemes are investment plans in which the owner or operating firm pays investors' returns from new cash raised from new investors rather than from the company's revenues.

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