Too good to be true

2016-01-27 06:00

HUNDREDS of people in Umvoti have “invested” money and savings in a scheme that is currently under investigation in South Africa as a potential pyramid scheme and which has been banned in several countries.
MMM dubs itself a “social financial network” and promises a growth of 30% per month. It claims to be a community of people providing financial help on the principle of “gratuitousness, reciprocity and benevolence.
How does it work – you register and indicate the sum of money (minimum R100) you are prepared to put into the system. Then you get special MMM money known as Mavro, which accumulates 30% interest per month (360% per year). You then get an order from someone (you are given name and details) to transfer money to. Once that’s done you can “sell” your Mavro - another MMM gets your order and buys Mavro from you … and so it goes on.

The founder of the MMM is a Russia convicted fraudster - Sergei Mavrodi - who is cashing in on an improbable interest rate and people looking for an easy buck. Remember that old saying “If it sounds too good to be true – it is.” Any scheme that offers 30% interest on your money per month is, without doubt, too good to be true.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.