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Imitation is the best type of flattery. It’s additionally the best type of “scammery.” That’s why scammers are imitating a kind of casual financial savings membership often called a “sou sou” or “susu” to trick individuals into becoming a member of what quantities to an unlawful pyramid scheme.
When you’ve by no means heard of the time period “sou sou,” a fast web search will let you know that it’s a rotating financial savings membership with historic roots in West Africa and the Caribbean. It’s a financial savings association between a small group of trusted individuals – often household and buddies – who frequently pay a set quantity into a typical fund and take turns getting paid out. In a sou sou, you don’t earn curiosity, by no means get out greater than you paid in, and there’s no reward for recruiting individuals to affix. This manner of saving is predicated on the dignity system, and it’s not with out threat.
So, it’s not stunning that scammers are pitching pretend sou sou financial savings golf equipment and alternatives like “The Circle Sport,” “Blessing Loom,” “Cash Board”. These sorts of unlawful pyramid schemes are the precise reverse of a sou sou: They promise you’ll make more cash than you place in and rely upon recruiting new individuals to maintain cash flowing into the fund. Like all different pyramids, as soon as they run out of latest recruits to deliver into the membership, the cash dries up, leaving everybody ready for his or her pay out holding the bag.
When you see a put up or get a direct message on Instagram, Fb, or different social media about one among these golf equipment, suppose twice and bear in mind the warning indicators. If the supply comes from a good friend or member of the family, inform them about this scheme. And, when you’ve when you’ve been contacted to affix a pretend sou sou, please inform us: ftc.gov/criticism. Your report can assist us defend others from a rip-off.
Karen Hobbs is Assistant Director, Division of Client and Enterprise Schooling, Federal Commerce Fee
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