Investment scam: If it seems too good to be true, it usually is

A reader alerts us to a new scam

stack of coins“I was making some research on investments and come across the company called Zantech Trading. They say if I invest from R10 000 once off I will get 25% dividend of the capital back for 12 months. In other words I pay R10 000 once off and get R2 500 dividend per month paid back to me for 12 months. At the end of 12 months I get my R10 000 back. Is this legitimate or is it a pyramid scheme?” writes Mahlatse

Maya replies: Basically what they are saying is that you give them R10 000, and then they will give you R40 000 back. It is an impossible rate of return. What you will find probably is that you pay the R10 000, you receive R2 500 in the first month, maybe even the second month – enough to tell your friends about it and convince more people to sign up – and then they disappear. This is very clearly an investment scam.

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