Ponzi schemes Scam

[elizabeth]

Ponzi schemes are scams that use funds collected from new investors to pay existing investors. No real investment exists and eventually these schemes collapse.

Scammers contact people on social media and asking them to download or invest through apps. They promise you will see high returns very quickly and you will think you do, but the scammer uses money other people have invested to pay you some return.

Once you have seen a return, the scammer will persuade you to encourage your friends, family and colleagues to invest in the same scheme.

They will pay them ‘returns’ and ask them to recruit people they know into the scheme as well.

Eventually, when the scammer runs out of money or the pool of people being recruited dries up, the scammer will disappear and no one will be able to recover their money.

Discussion

[Emma]

Besides financial fraudsters I appreciate their daring and guts to go ahead with such scams.