Pharaoh
Brigadier General
- Messages
- 20,308
A type of scam where large percentage returns are guaranteed, allegedly due to some sort of excellent investment (like forex). In reality, there is no investment and returns are paid by new deposits from investors.
Ponzi schemes inevitably fail in one of three ways:
Ponzi schemes inevitably fail in one of three ways:
The scammers take the money and run.
The authorities step in and close it down.
Not enough new money comes in to pay the promised returns and it collapses.
The authorities step in and close it down.
Not enough new money comes in to pay the promised returns and it collapses.
