THE SCHEME OF THINGS TIPS ON HOW TO AVOID FALLING INTO THE TRAP
The SA Reserve Bank has provided the following tips to help you identify get-rich-quick schemes that will result in you losing your money:
When choosing a business opportunity, do your homework thoroughly.
Get advice from registered financial advisers. This is available free of charge with no obligation.
Take your time. You didn’t save your money overnight. You shouldn’t be rushing to invest it in the first scheme you come across.
A big red flag should be “opportunities” that promise to make you wealthy in a very short period.
Beware of a “secret formula” that will only be shared with select investors.
Watch out for presentations where you are flooded with images of the lifestyle you will be able to afford, yet there are very few details of the product or service you are supposed to be selling.
Salesmen who are not able to explain their business model clearly and do not have or are not willing to let you take their sales brochures or product information home to read over at your leisure.
Only deal with accredited financial institutions. You can check their accreditation with the Financial Services Board, the Reserve Bank or the National Consumer Commission.
If you are slightly uncomfortable because of a pushy recruitment agent, walk away. If the investment offer is legitimate, it will not disappear overnight.
The golden rule is that if it sounds too good to be true, it usually is.
To report a pyramid scheme, visit resbank.co.za, where you can fill in an online form. Alternatively, if you want to find out if a business is accredited, contact the Financial Services Board fraud and ethics hotline on 0800 313 626