I want to avoid financial fraud

Ponzi, an example of what not to do

Have you heard of Charles Ponzi? He was a con artist who became famous during the 1920s for all the wrong reasons.

How? He promised investors annual returns of over 200%.

Is that realistic, a $2,000 return on a $1,000 investment? Not really, when you think that the returns promised by financial institutions on certain investments are closer to 2%. Ponzi schemes are still used today. You may have heard of Bernard Madoff, who was arrested in the United States in 2008.

If you have a friend who says that he invested and brags that he's getting huge amounts of money in interest or as a return, beware. In a Ponzi scheme, the fraudsters use the money "invested" by the victims to pay them false returns and pocket the rest. When there are no new investors and no more money or when he's pocketed enough, the fraudster disappears or is caught.

If you want to invest your money, first make sure your representative is registered with the AMF and that he is authorized to sell you the products being offered. Also find out how to avoid fraud.