201 Fraudulent Company (1/2)

Most of the rest were clothes and furniture… As expected, the cheap items were left behind.

Paintings and precious metals were taken away.

Also… there seemed to be a pamphlet for financial products. Were these Mitsugoshi Bank's advertisements?

”Hmm...”

I had a strange feeling, so I opened the pamphlet.

”Super-excellent products that completely guarantee your capital! ! We will pay you profits 3% of the funds every month! ! And the annual interest rate can reach 36%! !”

”Isn't it a scam?!”

I couldn't help but want to tear the pamphlet apart.

When I cultivated in the previous world, I also learned about investment in general. After all, [Powers in the Shadows] was inseparable from the materialistic world.

Anyone who knows a little about economy will chuckle at the  words ”guaranteed capitals”, monthly profits will make them laugh out loud and they will spew tea out of their noses when hearing the annual interest rate can reach 36%. But for those who don't have no knowledge of finance, these are some interesting deals.

People knowing little about finance tended to feel reassured about so-called completely guaranteed capital, while the monthly profits could make them feel relieved, and then they would be dazzled by the annual interest rate of 36%.

These advertisements feed on their unease and insecurity, and fanning the flames of their desire for easy cash.

This kind of scam was based on such psychological tactics.

”This is a typical Ponzi scheme…”

Let me explain – the so-called Ponzi scheme is a super famous fraudulent investing scam!!

It pays profits to investors every month with funds received from them.

For example, an investor invested 1 million Zeny, and got 30,000 Zeny as returns every month. After one year, he can get 1.36 million Zeny totally including the original 1 million Zeny. If you invest 10 million Zeny, you can get 300 thousand Zeny every month, which meets the living standards of common civilians.

Of course, you can withdraw your capital anytime. (The scammer won't tell you the capital can be withdrawn though)

By the way, a stable annual interest rate of 36% is impossible even for the top investors.

The scammer will not use the capital to generate profits.

He will only cut parts of the capital and give it back to investors as profits.

Of course, if this goes on, the scheme will end in failure someday.

However, the Ponzi scheme is an extremely effective scam that can make a lot of money in a short period of time.

There are three reasons.

First, the scheme is easy to gain trust.

The profits of the Ponzi scheme is paid monthly at the beginning.

Once investors get a few months of profits, they will feel reassured. This is a really cheap trust gained by just returning a few percent of investment money.

Second, investors will help contribute new funds.

In fact, after trusting that they get profits monthly, investors will just invest more to make more money.

Initially they invested 1 million Zeny, and then it would increase to 2 million, 4 million, and 8 million. Gradually investors will have the desire to live only by profits.

They will borrow money to invest more, or persuade relatives and friends to invest, that is to say, investors themselves have become advertising towers to help raise funds.

Third, it is not easy to be exposed.

The Ponzi scheme will not be considered as a scam during the period when profits are paid monthly.

This scam can last from months to years.

The scammer uses investors' money to enjoy wild merrymaking while waiting for investors to raise more funds.

Then, once the scammer finds that he can no longer raise more funds, he will run away with huge sums of money.

It would not be until  then that investors realized that it was a scam.

This is an efficient scam that makes all gears fit perfectly by manipulating the psychology of investors.

”No, no, why should the Mitsugoshi Company do this?”

Although the Ponzi scheme is a very efficient scam, it has a disadvantage.

That is, it will inevitably fail one day.