How To Avoid Being A Victim Of Ponzi Scheme

        Avoiding a ponzi scheme can be accomplished if you follow a few simple steps. The first step is to know the person with whom you plan on investing your money with. What are his credentials. Ask him to prove that he is qualified to provide you with the investment knowledge he says that he can. Be sure to do your own background check make sure that he belongs to the associations he says that he is and also be sure that he does not undergone any disciplinary actions.

        Second, understand the investment that is being offered. Get the advisor to fully explain it to you. If something does not make sense to you, don't be afraid to ask for a second opinion. Also look at the return that your advisor is promising. Remember the old adage "that if something seems to good to be true then it probably is". Look and see what returns are being offered. if you are being promised something like 10% to 15% per month return on your investment, then you should probably think twice on investing with him.

        Finally, be sure to diversify your investments. Never keep all of your eggs in one basket. By keeping your money on more than one investment, if you have one go bad, you will not lose your entire investment. 

        By following these simple steps, you should be able to avoid most ponzi schemes.