Penny Savings Club Scam

If you’re not familiar with the Penny Savings Club scam, you’re not alone. The online financial institution has many members and a membership-based program. What’s worse, it can be extremely tempting to join. The money you save can go towards a great vacation or a nice dinner for two. But before you join, make sure you read some reviews about the club and its reputation. Below, we’ll take a look at some of the major red flags.

First of all, be aware of the traditional sou-sou. This savings club is an informal arrangement with long-standing roots in West Africa and the Caribbean. Members deposit a certain amount of money into a common account and are notified once the balance reaches a certain amount. This process is called “rotating,” and each member pays a fixed amount into the same account. However, the scammers have turned this traditional savings club into an elaborate ponzi scheme, so beware of the “sou sou.”

Another scam involves a so-called “sou sou.” This type of club is not legitimate. It’s a pyramid scheme, based on a network of members who pay a fixed amount into a common fund. Unfortunately, these schemes typically fail because of lack of new recruits, and they have to refund their victims’ money. So, how do you avoid becoming a victim of this scam? Start with the basic information below.