Ponzi scam
Robbing Peter, Paul
A Ponzi scam is a fraudulent investment scheme where returns to early investors are paid using money from newer investors rather than legitimate profits.
Named after Charles Ponzi, who ran such a scheme in the 1920s, these operations inevitably collapse when new investment slows: The whole thing turned out to be a Ponzi scam—there was never any real business.
- schemeCalculated strategy, often secretive
- swindleDeception for financial gain
- pyramidPointed polyhedral solid
- house of cardsStructure prone to collapse
- investmentDeploying capital for returns
fraud · financial · panic · forensic accounting · promise · securities fraud · whistleblower protections · criminal prosecution · deception · too good to be true · money laundering · herd mentality · social proof · con · cash · financial ruin · embezzlement · cognitive dissonance
Ponzi scamcharitable giving
Donating to help others
philanthropy · honest work · ethical investing · fair trade · community investment