A Ponzi scheme is an investment scam that involves the payment of purported returns to existing investors from
funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, rather than engaging in any legitimate investment activity, the fraudulent actors focus on attracting new money to make promised payments to earlier investors as well as to divert some of these “invested” funds for personal use.
As with many frauds, Ponzi scheme organizers often use the latest innovation, technology, product or growth
industry to entice investors and give their scheme the promise of high returns. Potential investors are often less
skeptical of an investment opportunity when assessing something novel, new or “cutting-edge.”
Look Out for Potential Scams, Be Careful!!!