Scamming Folks Using Ponzi Schemes

Scamming Folks Using Ponzi Schemes
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Scamming Folks Using Ponzi Schemes
1 So, exactly what is a Ponzi scheme?
A Ponzi scheme is a type of investment scam in which existing investors use the funds contributed by new investors to pay themselves. A Ponzi scheme is different from a legitimate business organization in terms of its avenues for gaining profits (De Saeger, 2015). While legitimate businesses focus on trading goods or services for profits, Ponzi schemes rely on the investments of new investors to enrich the existing investors. The schemes operate to convince new investors that the organizations own assets from which they trade for profitability (De Saeger, 2015). As long as there is a steady influx of new investors, Ponzi schemes stay financially sound.
2 Why did relatively smart and successful people fall for this deceptive “Ponzi” hoax?
Ponzi schemes showcase some strategies that help them to attract different people including