How can I recognize and avoid Ponzi schemes?

Ponzi schemes are a form of investment fraud that seeks to take advantage of an investor’s trust and greed. In North Carolina, it is important to be aware of the warning signs of a Ponzi scheme in order to best protect yourself. Some of the red flags to look out for include promises of guaranteed returns with little or no risk, being asked to cash a check and return the money, and not being able to get a clear answer when you ask questions. It is also important to be aware of any investment opportunities coming from someone you do not know. If the person does not have a license to offer investments, it is best to stay away. Additionally, it is important to not be pressured into investing. Take time to research the opportunity and ask questions before investing. Finally, if you have been targeted by a Ponzi scheme or suspect that you have been, it is important to contact the North Carolina Securities Division at (888) 745-3319 or visit www.nsec.gov. Here, you can report potential fraud and get more guidance on recognizing and avoiding a Ponzi scheme.

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How can I recognize and avoid Ponzi schemes?

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