Ponzi Scheme Examples

Subpage 3: The Ponzi Scheme for Dummies

Example 1: "Invest in my new business, it's going to make you rich!" (Note: not actually going to make you rich)

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Warning: Do not try this at home!

A Ponzi scheme is a type of investment scam in which the perpetrator pays returns to old investors with money taken from new investors. It's like a never-ending chain of people handing money to each other, except one person always gets left holding the bag.