Feds bust up Ponzi scheme on Facebook and Twitter

Watch out if you use Facebook and Twitter. There could be a bull’s-eye on your back for alleged scamsters touting a get rich quick scheme through investing in securities.

USA TODAY reports Fleet Mutual Wealth and MWF Financial, doing business as Mutual Wealth, were allegedly using the popular social media sites to friend people and convince them to hand over money for an alluring investment opportunity.

The alleged scamsters said they had a secret method of investing in securities for just minutes or seconds at a time. By using proprietary buy/sell signals, they said they were able to deliver returns of 2% to 3% per week. But the money they took went offshore to untraceable bank accounts.

I’ve got to give credit to the SEC (Securities and Exchange Commission). This is not a group known for its swift execution, but they were able to get a court order to freeze the funds before this thing really took off.

The people who lost money will likely never see any of it back.

But here’s the lesson for you: Anytime someone starts talking about a “secret formula” or promising big returns on your money in a completely safe way, your defenses should go up.

We’re in a world where if you make a 10% return on stocks annually by being well-diversified, you’re doing great. So if somebody is promising 2 to 3% per week, that’s a no go!

Be smart, be careful, and avoid the fast talkers, even on Facebook and Twitter.

For further reading:

• Beware of the ‘grandma scam’ on Facebook
• Beware of the one ring scam on your phone