Lure of high yields, lax regulators behind Ponzi scams

[webfact]

 

More than 13,000 victims are estimated to have suffered losses of several billion baht as a result of the latest alleged Ponzi scheme, under the name Forex 3D, supposedly engaged in forex trading. 

 

The alleged Ponzi scheme is currently under police investigation and some of the suspected masterminds are in custody, including some celebrities from the entertainment industry.

 

Why do so many people fall prey to such Ponzi schemes without learning the lessons from previous cases?

 

One hypothesis is that people search for higher yields due to low bank deposit rates and low return on investment from the domestic stock market. Many people are unable to make ends meet, so they become vulnerable to financial cheating through pyramid schemes.

 

Thailand has experienced a long period of slower economic growth since the country experienced a financial crisis in 1997. The crisis has been followed by low investment, low economic growth, an aging society and political instability.  Given such bleak economic conditions, many people are seeking high returns on their savings and taking excessive risks.

 

Full story: https://www.thaipbsworld.com/lure-of-high-yields-lax-regulators-behind-ponzi-scams/

 

-- © Copyright Thai PBS 2022-09-27

 

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[Phuketshrew]

17 minutes ago, webfact said:

Why do so many people fall prey to such Ponzi schemes without learning the lessons from previous cases?

Greed and stupidity.

[Shuya]

18 minutes ago, webfact said:

One hypothesis is that people search for higher yields due to low bank deposit rates and low return on investment from the domestic stock market.

Because they are greedy?

[Orinoco]

11 minutes ago, Shuya said:

Because they are greedy?

One of the cornerstones of Thai society.

 

[greenmonkey]

yep, greed and gullability (if that is a word). I told aunties and friends (neither of which were poor or desperate for money) to stay away from these schemes many many times but they chose to ignore and they constantly tell my missus how much money they are earning and then suddenly you hear nothing more from them. Then eventually we find out that they lost their money and when the missus asks how much they suddenly change the subject or give a very vague answer!!! ????

 

But I bet they will still be willing to pay into the next scheme that comes along.

[xylophone]

8 hours ago, Orinoco said:

One of the cornerstones of Thai society.

 

Unfortunately scams like this are happening all over the world with Ponzi schemes, crypto currencies and whatever else one cares to name, so one could suppose that greed and gullibility (perhaps stupidity) are pretty well universal!

[hotchilli]

21 hours ago, webfact said:

Why do so many people fall prey to such Ponzi schemes without learning the lessons from previous cases?

Greed is greater than grey matter?

Edited September 28, 2022 by hotchilli