Warding off the Ponzi Trap: Eschewing the Quick Buck Promise that can Dupe You

Abstract

A Ponzi scheme is an investment fraud that involves illegal, unregistered pooling of investment. Ponzi schemes are named after Charles Ponzi, an Italian who duped thousands of US investors in 1920s by promising to double their money in 90 days. The Ponzi operators entice investors by offering unusually high returns in a very short time or/& guaranteed returns consistently over a long period of time. Understanding how scam artists operate a Ponzi and ticking some basic check-boxes can help you to side-step the Ponzi trap, protect your hard money and reach your financial goals.