Unfortunately, it is not just scams that can destroy people’s lives but also bad financial advice like highly geared, high risk “investments”.
When Storm Financial were going gangbusters in the 2000’s, they were encouraging clients to borrow and to mortgage everything to the absolute maximum so as to get rich faster.
Then along came the GFC which promptly put an end to Storm Financial and their clients’ paper fortunes.
A former neighbour who worked in the office at Qld Rail at the time told me about how a lot of the train drivers had jumped onboard and they would walk around saying that they did not know how they were ever going to spend all their money.
After the GFC hit, the same drivers were walking around looking at their feet.
Whereas victims of scams like the Bitcoin Scam may lose a lot, or all of their money, persons who mortgaged property and/or borrowed against their shareholdings can lose everything.