In this age, those people who look for short cuts and easy ways to increase their wealth, mostly end up becoming victims of Ponzi schemes. Such schemes are launched by fraudulent elements in society who exploit the general mind-set and offer huge profits against investment and lure the masses into their trap. Their exploitation has become easy in the digital world where the identity of the proprietor of Ponzi schemes remains hidden while the investors are deprived of their hard earned money in no time. Sensing the increasing number of such fraudulent schemes, the Securities and Exchange Commission of Pakistan (SECP) has warned the general public against investing in Ponzi and pyramid schemes. Complicating the investigation, masterminds of the scam are said to be dual nationals and are settled in foreign countries. On its part, the SECP has made public a list of companies involved in unauthorised business activities such as illegal collection of deposits from investors by making false promises of exceptionally hefty returns.
A Ponzi scheme operates on the basis of promising investors extremely high, even unrealistic, returns on their capital. Since there are few legitimate projects offering these kinds of returns, the scheme sustains itself by initially paying off investors from the money being brought into the scheme via a continuous stream of eager new investors. Soon, however, the scammers disappear and run off with the investors’ money, leaving thousands of victims behind.
The facts of a large number of such cases show how easy it is for crooks and hypocritical persons to take advantage of the masses in Pakistan. For an example must be made of such charlatans who are duping the public on a regular basis. Regardless of the inherent difficulties of investigating these cases, the prosecutors must explore every option, including looking into existing extradition treaties and issuing international warrants for the leaders of scams who are hiding in foreign countries. The general public also be careful regarding any such scheme that offers illogical profit against their investment. They need to check their credentials and report any suspicious elements in society to the concerned authorities.
