How to Spot a Passive Income Ponzi

The allure of passive income is powerful. The idea of your money working for you while you sleep is the ultimate financial goal. However, this desire has given rise to a sophisticated wave of investment scams masquerading as legitimate "fintech," "AI trading," or "crypto arbitrage" platforms.

Projects often pop up with sleek websites and big promises. But how do you tell the difference between a legitimate investment and a ticking time bomb?

🚩 The 3 Dead Giveaways

• Unrealistic, Consistent High Returns: Real markets fluctuate. No legitimate trader wins every single day. If a platform offers you 1% daily or a fixed weekly return, it is a mathematical impossibility in the long run. Even the best hedge funds in the world struggle to make 20-30% per year.
• The "House Money" Paradox: If an introducer tells you to "Withdraw seed capital and play with house money," they are implicitly admitting the project is unstable. Legitimate investments encourage compounding, not frantic withdrawal strategies.
• No Third-Party Proof: If they can only show you trading results on their own website (dashboard) or Excel spreadsheets, it is fake. Real funds use verified third-party auditors like Myfxbook.

The Bottom Line: Protecting your capital is the first rule of investing. If an opportunity feels like a "secret" to getting rich quick, it’s usually a trap. Use the ScamTiger test above to verify any project before you risk a cent.