Many people in Mexico are looking for options to make their money grow, which is why offers that promise high returns in a short period of time are attractive; however, Condusef warns of the risk of falling into the famous pyramid schemes.
Financial pyramids and Ponzi schemes are scams where the money obtained by the first investors comes from the resources contributed by new clients, so the latter lose out.
The mechanism works by encouraging each participant to invite a group of at least two acquaintances to invest in a given business, so that each one involves two other people, and so on, but over time it loses momentum.
This results in a huge fraud where there are no more people left to join the “pyramid”, so that only those who promoted the scheme, i.e., the initiators of the business, receive resources from those who participated later.
Nowadays it is common to find this kind of pyramid schemes not only for cash or dollars, but also with assets such as cryptocurrencies, and some of them adopt attractive names such as “flower of abundance”.
Condusef invites to resort to formal investment mechanisms, specifically in institutions established and regulated by the National Banking and Securities Commission (CNBV).
