The Ponzi scheme is now 100 years old

 

Heard of a Ponzi scheme ? This fraudulent gimmick to fool investors out of their money was at first started by Charles Ponzi, in January 1920. He found and tried to exploit a weakness he had found in postal reply coupons introduced around that time. Ponzi made millions out of this scheme, but he owed even more debt to his investors. He was later arrested and served time in jail. He died in poverty, having spent the last of his days in a charitable hospital.

But a hundred years later, even today, people still fall for this kind of ‘investment’ scheme, having learnt nothing from the past.

Today the internet is a fertile ground for ‘get rich quickly’ money schemes. But the underlying foundation is still fraud. People fall for it not because they are greedy, but due a fear of missing out. You see, if a new investment schem works, those who DON’T invest are going to miss a rare opportunity.

So the next time someone tells you of a new investment opportunity, and promises to double your money, don’t fall for it. Its nothing new, it is a very old form of fraud.