The cloud Ponzi schemes have started. Buyer Beware.

Last week the Security and Exchange Commission shut down a worldwide pyramid scheme that was targeting Asian-American, Hispanic and foreign investors promising high returns for investments from cloud computing services. WCM and WCM777, the companies behind the scheme, raised more than $65 million in 2013. They promised gullible investors that they could double their money in 100 days by investing anywhere from $300 to $1,999 in cloud services.