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Ponzi Schemes

A Ponzi scheme is a fraudulent investment scheme in which returns are paid to existing investors from funds contributed by new investors, rather than from profit earned. The scheme relies on a constant influx of new investors to provide returns to earlier investors, and it typically collapses when there are not enough new investors to support the returns promised to earlier investors. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to ponzi schemes.

Ponzi Scheme: How it Works, Types, and Examples Thumbnail

Ponzi Scheme: How it Works, Types, and Examples

Silas Bamigbola

OneCoin: What It Is, How It Operated, and the Lessons Learned Thumbnail

OneCoin: What It Is, How It Operated, and the Lessons Learned

Alessandra Nicole

High-Yield Investment Programs (HYIP): Explained, Types, and Examples Thumbnail

High-Yield Investment Programs (HYIP): Explained, Types, and Examples

Silas Bamigbola

Bernie Madoff: The Financial Fraudster Thumbnail

Bernie Madoff: The Financial Fraudster

SuperMoney Team

ZZZZ Best: Definition, How It Worked, Types, and Examples Thumbnail

ZZZZ Best: Definition, How It Worked, Types, and Examples

Abi Bus

Allen Stanford: Biography, Ponzi Scheme, and Impact Thumbnail

Allen Stanford: Biography, Ponzi Scheme, and Impact

SuperMoney Team

About Ponzi Schemes

A Ponzi scheme is a fraudulent investment scheme in which returns are paid to existing investors from funds contributed by new investors, rather than from profit earned. The scheme relies on a constant influx of new investors to provide returns to earlier investors, and it typically collapses when there are not enough new investors to support the returns promised to earlier investors.