ARE YOU A SCAM-BUG?

Scam /’skam/- a fraudulent or deceptive act or operation (Merriam-Webster online)

Bug-an insect or other crawling or creeping invertebrate, some of which are known to love flying around lights(sometimes endangering themselves) or crawl over waste (that’s sh*t to you)

Ponzi scheme -fraudulent investment operation that involves promising or paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from revenues generated by a real business. Named after the person who started a pyramid scam, Charles Ponzi, an Italian immigrant to the United States who became one of the greatest swindlers in American history. (Wikipedia.org)

Multitel, francswiss, PIP, Royal Manchester, and most recently the Legacy Group of Companies. Which one did you invest in? all or none of the above? Much has been written about “how to tell a scam”, but none is about how to tell if you’re one who is easily duped by one. Based on the reactions of most of the people who were duped in any of the above, I have come up with crude and simple way to tell if you’re one, take a look below and see if it applies to you, it won’t take long.

1.) Insurance agents annoy you, you distrust bankers, and financial planners, however, you are instantly impressed when some hotshot rep of a company you haven’t heard of, or maybe was referred by someone you know, offers you an “INNOVATIVE” way to double your money in 3 to 5 years time “GUARANTEED”!(and this include testimony’s of satisfied clients-persons you know)

2.) You find the intricacies of financial planning such as savings, insurance, bonds, mutual funds, equities, and cost averaging, confusing, dull or boring, and not worth your time, which is why you prefer the”hotshot” who won’t bother you with the details (to explain how the whole thing works,) but goes directly to the bottomline-“ double your money in 3 to 5 years time “GUARANTEED”! Hmm makes sense doesn’t it?

3.) You think savings and investments are only for people who have disposable incomes and claim you can’t afford to have one, even if its only a few thousand for an insurance premium, or initial investment, from well established companies. however when some unknown company dazzles you with its vague” double your money” scheme, you have no trouble coming up with a hundred thousand , and eventually ,when that very same company is shown to be operating a scam, and either folds up or runs away with your money, your fist reaction is denial (that you invested) then, you play down your hundred thousand investment lost as in “at least I only lost that much compared to ...who lost a million or, as in the case of Legacy, you are actually grateful that you still receive a fraction of your total investments as interest payments, despite your principal being lost.

4.) You easily get worried when you hear that the reputable bank in which you have a deposit is exposed to the US sub-prime despite public assurances issued by Gov.regulatory agencies such as SEC, BSP, and even DTI, while on the other hand, you have no problems making an investment with some company who promised to double your money despite warnings by those very same government regulatory agencies about scams and the unsafe and unsound practices of some rural banks.

5.) You think setting aside at least 10% of your net income for savings is too much, while your total expenditures on the lottery (lotto-where you have a one in 80m chances of winning a million,) or maybe swertres (3 digit nos. game-where you have one in 700 chances of winning a few thousand) is at least equal to or more than that.