How to avoid being scammed by MMM style schemes

Maya Fischer-French, Personal Finance Journalist, gives us the lowdown on what's at the heart of the MMM pyramid scheme.

Fischer-French says the man at the centre of the MMM scheme, Russian Sergei Mavrodi, did this in Russia on a grand scale. She says they estimate it cost investors $10 billion. But, she says no one really knows, because no one admits to being involved.

He was arrested, convicted and served time. But, once he was out, he started all over again.

He's been around., reinvented himself, and lost people's money.

Maya Fischer-French, Personal Finance Journalist

It sounds all very safe and sweet, but if you go look at their website, with its promise of 30% return a month...those are red flags.

Maya Fischer-French, Personal Finance Journalist

She says she is only starting to unpack this whole scheme, but like all pyramid schemes, it is going to collapse.

she says the SA branch are making big efforts to say it has got nothing to do with what is going on with MMM internationally.

There is no organisation to go to really, these are not easy things to unwind and find out what is going on...it is important to spread the warning.

Maya Fischer-French, Personal Finance Journalist

There is going to need to be a lot more peeling away of the layers of this onion, but she says, it is undoubtedly one of the largest pyramid schemes created.

Read More
How Standard Bank can take your small business to the next level

How Standard Bank can take your small business to the next level

Ray White (on The Money Show) interviews Standard Bank Incubator Jayshree Naidoo.

South Africa's economy is sick. How to keep whatever wealth you have intact...

South Africa's economy is sick. How to keep whatever wealth you have intact...

All is not well with the economy. We live in crazy times. Here’s how to protect your investments and finances…

How the symbol for a good idea has outlived the product that inspired it

How the symbol for a good idea has outlived the product that inspired it

The history of General Electric is the history of electric lighting and after 125 years they may be selling it.

The SABC is broke (and in danger of collapse)

The SABC is broke (and in danger of collapse)

The Money Show’s Bruce Whitfield interviews Media Monitoring Africa Head of Policy Thandi Smith.

Famine fuels re-emergence of Somali pirates (Robin Hoods?) after 4 silent years

Famine fuels re-emergence of Somali pirates (Robin Hoods?) after 4 silent years

Somali pirates are back, attacking commercial ships once more, says African Business News correspondent Leslie "Lee" Kasumba.

How to find a great property rental deal (or great tenant)

How to find a great property rental deal (or great tenant)

Renting? Letting? Bruce Whitfield checks out an amazing new platform that connects tenants with property managers.

Popular articles
What men need to know about checking for prostate cancer

What men need to know about checking for prostate cancer

Urologist and sexual health expert Dr Shingai Mutambirwa says it's vital for men above 40 to check their prostates annually.

"I'm no longer going to watch Isidingo"

"I'm no longer going to watch Isidingo"

Will Isidingo lose viewership over it's episode tackling racism?

Why SA remains unequal despite government intervention

Why SA remains unequal despite government intervention

The latest Gini index reveals SA is one of the most unequal countries in the world in terms of income distribution.

[Listen] SA's youngest female PhD grad opens up about her achievement

[Listen] SA's youngest female PhD grad opens up about her achievement

23-year-old North-West University student Musawenkosi Saurombe aces her PhD thesis passing with no amendments.

Mandela's granddaughter calls for Jacob Zuma to step down

Mandela's granddaughter calls for Jacob Zuma to step down

Ndileka Mandela says it's a blatant "No" when asked if she will be voting for the ANC in the next elections.

Terror expert explains why Hawks probe on coup plotter arrest doesn't add up

Terror expert explains why Hawks probe on coup plotter arrest doesn't add up

A man who allegedly plotted assassination of prominent South Africans including Zuma, Guptas and Maine is set to appear in court.

Warder recalls "prison hell" as he retires after four decades at Pollsmoor

Warder recalls "prison hell" as he retires after four decades at Pollsmoor

Chris Malgas speaks about his experiences as a prison warder at the notorious Pollsmoor prison for four decades.