Here's how to spot a ponzi scheme instantly and avoid becoming a victim

When a company offers 20-50% interest income on investments, it is a sign to stay away

Hyderabad-based Heera Group is in the eye of a storm for its scheme Heera Gold, which offered spectacular returns to investors. However, it has been unable to pay for the past few months. A report by Moneylife says the market regulator, the Securities and Exchange Board of India, has identified it as a ponzi scheme and referred the case to the Economic Offences Wing, Enforcement Directorate and Commissioner of Police, Hyderabad.  

The group has drawn flak from investors for not paying them “monthly profits” since May. The company has been collecting money from investors and sharing its “profits” with them.