Ponzi Scheme
Investment fraud paying returns from new investor money.
Ponzi Scheme in one clear explanation
Investment fraud paying returns from new investor money.
- Scheme promises unusually high, consistent returns with little risk
- Early investors receive payments from money deposited by newer investors
- Best first move: No legitimate investment guarantees returns
Check for This Scam
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How This Scam Works
Scheme promises unusually high, consistent returns with little risk
Early investors receive payments from money deposited by newer investors
Collapses when new investments slow down, leaving most investors with nothing
How to Protect Yourself
- ✓ No legitimate investment guarantees returns
- ✓ Research the company
- ✓ Check SEC registration
- ✓ Be skeptical of referral bonuses
Frequently Asked Questions
What is Ponzi Scheme?
Investment fraud paying returns from new investor money.
How does Ponzi Scheme work?
Scheme promises unusually high, consistent returns with little risk Early investors receive payments from money deposited by newer investors Collapses when new investments slow down, leaving most investors with nothing
How can I protect myself from Ponzi Scheme?
No legitimate investment guarantees returns Research the company Check SEC registration Be skeptical of referral bonuses