{"id":26094,"date":"2022-09-23T12:16:16","date_gmt":"2022-09-23T12:16:16","guid":{"rendered":"https:\/\/nazing.co.uk\/?p=26094"},"modified":"2022-09-23T12:16:16","modified_gmt":"2022-09-23T12:16:16","slug":"how-do-you-protect-yourself-from-the-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/nazing.co.uk\/how-do-you-protect-yourself-from-the-ponzi-scheme\/","title":{"rendered":"How do you protect yourself from the Ponzi scheme?"},"content":{"rendered":"\n
The previous few decades have seen a variety of fraudulent financial schemes emerge due to unstable economic conditions. The Ponzi scheme is one such fraud plan. Charles Ponzi, who in 1920 employed a method known as the “confidence trick,” is the inspiration behind the Ponzi scheme. He promised investors their money would quadruple in 90 days after purchasing foreign postal coupons. <\/p>\n\n\n\n
The initial appearance of the investment was optimistic because he had given all of the early investors their promised profits. Then, however, Charles’ Ponzi scheme<\/em><\/strong><\/a> attracted investors, which caused his debts to expand rapidly.<\/p>\n\n\n\n His obligations increased significantly due to promises of doubling everyone’s income. Now he owed everyone much more. However, Charles Ponzi didn’t care as long as every investor wasn\u2019t demanding their money at once. But when it was revealed that he had filed for bankruptcy, all of his investors scrambled to withdraw all of their money at once out of fear. As a result of his scheme, Ponzi received investments totaling more than $200 million. However, while returning the money to the investors, he fell short on 120 million dollars. It was a crucial lesson for the investors and everyone else who learnt why one shouldn\u2019t follow the herd mindlessly. But the century-old program still has a negative impact on people who aren\u2019t investing cautiously.<\/p>\n\n\n\nIs a Ponzi scheme unlawful?<\/h1>\n\n\n\n