Ponzi Scheme

Ponzi Scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from the investors that follow. The victims are unaware that other investors are the source of the supposed investment returns. A Ponzi scheme maintains the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment. If you do a google search for ponzi scheme in the news, you will get an endless list of ponzi schemes going all the way up to the present day. It could involve the almost anything that promises some magical investment returns. The con artist takes advantage of people’s greed and lack of understanding of an investment product. Some more recent cons involve cryptocurrency. People see something like bitcoin with eye popping returns and want to get in on the action. The smooth talking con artist takes advantage of these people chasing the hype. It ends in sorrow for most people. It boils down to the adage,”If its too good to be true, it probably is”