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.

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