Returns that look too steady and too high are a warning.
Direct answer
A Ponzi scheme is a fraud that pays existing investors using money from new investors rather than real profit. It collapses when new money dries up. Warning signs include guaranteed high returns, unclear strategies, pressure to reinvest and difficulty cashing out.
How it works
- The operator promises high, steady returns.
- Early investors get paid, which builds trust.
- They recommend it to others.
- New money pays old investors.
- When recruitment slows or many withdraw, it collapses.
Red flags
- Guaranteed or unusually steady returns.
- A secret or vague strategy.
- Unlicensed sellers.
- Pressure to bring in friends.
- Delays in withdrawing money.
Protect yourself
- Check the seller and product with your country's financial regulator.
- Ask how returns are generated.
- Never invest money you cannot afford to lose.
- Get independent advice.
Where Teyro fits
Teyro's How Scams and Financial Fraud Work course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
If an investment promises high returns with little risk, assume something is wrong. This is general education, not advice.
This is general education, not personal financial advice.
