Ponzi schemes have existed for more than a century now and people still continue to fall victim to this fraudulent investing scam. It lures victims to invest in a fraudulent enterprise by paying quick returns to earlier investors using the money taken from more recent investors. This risk-free high returns investment, however, phases out when the number of investors start decreasing, thus leaving them in the lurch. Named after Charles Ponzi, who received wide media coverage after his fraudulent plot collapsed in the 1920s, Ponzi schemes continue to exist to this day in various forms. Some of the incidents that surfaced recently include the $20 billion scam carried out by Bernard Madoff, who died in prison last year. And just days after Hollywood actor Zachary Horwitz was sentenced to 20 years imprisonment for swindling $650 million in a ponzi scheme, Nagaland cyber crime police issued a statement warning the people against fraudsters going by the name HPZ Token, who duped crores of rupees from thousands of people across the country, including Nagaland. It said the scam, which started in the state in June last year, ceased to exist after two months, after which a case had been filed against the unknown accused based on a complaint. While all types of fraudulent activities should be eliminated, it is also important to ask why people keep investing in such scams despite knowing that it’s illegal; and why public don’t report such fraud to law enforcing authorities when it’s still active.
The fact is that Ponzi schemes are not new to the state. Nagaland police have arrested a few persons for duping hundreds of people and swindling crores of rupees by luring them to invest in a fraudulent firm. It is also not uncommon for people to talk about the so called “downline commission” investment on social media platforms but nobody does anything about it. Perhaps those involved in the scam are people they know and might not want to hurt, but it facilitates the menace to flourish. Citizens should report to the police if any company, organisation or individual offers schemes that promise huge returns in a short span of time or a scheme that is too good to be true. It is unfortunate that people keep falling victim to such scams despite the police warning time and again not to invest in suspicious schemes that promise quick returns. Fraudsters are continuing to have a field day, taking advantage of the people’s gullible nature. This gullible nature should be shed; the sooner the better. We also should not give sensitive personal information, bank details, OTPs, etc. to unknown persons. We need to remain vigilant and ward off scams.