As you read the next email in your box about how the widow of the former leader of Mubai needs your help getting her deceased hubby's millions out of the corrupt grasp of that nation's banks, rest assured, internet crime has already moved well past those clumsy attempts to use your money for the personal gain of some anonymous internet scammer.
One of the most prevalent scams today is the HYIP, or High Yield Investment Program.
These programs are nothing new.
More than one hundred years ago, businessmen requiring quick capital began enticing investors with promises of a quick and profitable return on their money.
In some instances, these "investments" were more like contributions, as many, many investors lost their shirts when their finance dreams went belly-up.
In essence, HYIPs have always been risky business.
Once a real investment opportunity, HYIPs realized an entirely new purpose when Charles Ponzi entered the picture in the early 1900's.
Ponzi needed money for his newly conceptualized business and decided to entice investors by promising a fifty percent return on their money in less than two months.
Not content to stop there, Ponzi also promised investors that they would double their money in three months!However, since Ponzi was using the money from subsequent investors to pay off initial investors, it was only a matter of time before his scheme came tumbling down.
The problem with these types of schemes is that they don't depend on any real business profits, just the continued influx of cash from new investors.
The opportunities presented by this type of scheme have been too good for internet scammers to ignore.
Now, it's not your son-in-law asking for startup capital for his dream business, but rather some anonymous criminal looking to part you from your money and run.
One of the most prevalent scams today is the HYIP, or High Yield Investment Program.
These programs are nothing new.
More than one hundred years ago, businessmen requiring quick capital began enticing investors with promises of a quick and profitable return on their money.
In some instances, these "investments" were more like contributions, as many, many investors lost their shirts when their finance dreams went belly-up.
In essence, HYIPs have always been risky business.
Once a real investment opportunity, HYIPs realized an entirely new purpose when Charles Ponzi entered the picture in the early 1900's.
Ponzi needed money for his newly conceptualized business and decided to entice investors by promising a fifty percent return on their money in less than two months.
Not content to stop there, Ponzi also promised investors that they would double their money in three months!However, since Ponzi was using the money from subsequent investors to pay off initial investors, it was only a matter of time before his scheme came tumbling down.
The problem with these types of schemes is that they don't depend on any real business profits, just the continued influx of cash from new investors.
The opportunities presented by this type of scheme have been too good for internet scammers to ignore.
Now, it's not your son-in-law asking for startup capital for his dream business, but rather some anonymous criminal looking to part you from your money and run.