Looking to make a quick buck?
You’re more likely to lose it than make money if you fall for something that sounds too good to be true.
And returns of 2% a day are just that – too good to be true.
Defencex boss Chris Walker’s been making headlines for months for this exact promise – it’s clear his latest investment scam is set to pull the wool over the eyes of unwitting investors yet again.
Here’s how Walker’s new ‘investment scheme’, Kipi, works…
You see, Walker’s punting a new money-making scheme called Kipi that lets Defencex members ‘reach their dreams’, reports Moneyweb
The next Kipi seminar will be held today, 14 May, in Maponya Mall, Soweto.
Defencex members have been told that all they need to do is write down a ‘dream’ they’d like to achieve, and they’ll receive the cash to fund this dream thanks to a commission structure, after making a ‘donation’ of at least $50.
That’s may sound like a worthwhile investment, but if you don't know how to spot a pyramid scheme you will lose all your money, explains investment expert Francois Joubert on FSP Invest
Do you know how a pyramid scheme works?
The obvious signs of a pyramid scheme or investment scam are that it’s designed to get your money and recruit more and more suckers as they’re short of money, writes Joubert.
If you’re worried you might be about to lose your money to a pyramid scheme, Joubert advise you check for any ‘guaranteed return’, as there’s generally no such thing when investing – after all, investing is risky by nature.
But that’s effectively what Defencex did – it offered investors a ‘guaranteed’ return of more than 600% per annum, explains Moneyweb
You next step is to keep your wits about you by doing a little bit of research on the company or scheme before you invest.
“I often get calls from people saying they’ve been approached with a fantastic opportunity over the phone, which lets them invest in an obscure mining company in Europe – there are lots of these cold-calling scams out there,” says Joubert.
Cold calling, whether in person, through an ‘open invite’ on Facebook or by telephone, is almost always a sign of an investment scam, says The South African Investor
– don’t fall for it.