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Apr 11, 2007

Get poor quick schemes

Purveyors of classic "Ponzi" or "pyramid" get-rich-quick schemes that have fleeced countless naive and desperate investors of their savings over decades have found a wonderful new outlet: the Web. The curiously named Haisoj Network reports problems with a site inviting people to earn attractive returns on their investments simply by surfing the web ... and by recruiting further members - which looks to me like a huge clue to the true nature of the beast. If investment returns for existing members are being paid at least partly from the investments of new members, there inevitably comes a tipping point when the whole scheme collapses. Cast aside those greedy thoughts about 'getting in there early': the originators are the only people likely to make real money, unless they end up in court facing fraud charges in which case their lawyers get rich quick.

As with phishing exploits, phools and their money are easily parted. Pyramid scheme investors would be better-off investing their hard-earned dosh in a roll of tin foil.

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