When and how did Ponzi scheme started?

[Mika]

Ponzi scheme is a fraudulent business model where investment from one investor is taken to pay profits to another investor. For example, A is paid with the money collected from B, B is paid with the money collected from C, and this goes on and on until there is someone left to invest. Once there are no investors, the business disappears. The company tells its investor that they have invested in some high yield program, thus are able to pay such a high return, however, this is nothing but a lie. This business is named after an American fraudster called Charles Ponzi. In 1920s, Charles Ponzi created a lot of people and accumulated a lot of money. This business model got his name. However, it was in existence long before Ponzi.
The first kind of Ponzi business model was recorded in Germany and later in the US in the late 19th century.
All of the High Yield Investment Programs operate in the Ponzi scheme.

 

[Damismiling]

Ponzi scheme is a fraudulent scheme that attract many with the high rate of return, many people have fallen victim of Ponzi schemes because of the high return they promise to give out and at the long run they run away with your money.
Although I have never fallen prey of any because I Know some warning signal that tells me a business is a scam or not

 

[Sincerem]

Fantastic update about the brief history of ponzi, how it got started, and where the name ponzi emanated from. Right from time, I've viewed ponzi investment scheme as a fraudulent type of investment. HYIP is classified under ponzi because it operates on same levels like ponzi, as such I don't waste my time on them.

 

[giddy]

up till today I still wonder how people fall for this ponzi scheme of a thing
Common how can someone possibly tell you that you will double your capital in twenty four hours and you will go ahead to invest in such thing, that is you are heading to disaster
At first ponzi scheme may appear as if it pays but in long run you will regret it
Stay away from ponziy

 

[WhiteHouse]

The thing is named after Charles Ponzi, who got infamous for utilizing the strategy during the 1920s. The thought, present in books (for instance, Charles Dickens' 1844 novel Martin Chuzzlewit and 1857 novel Little Dorrit each depicted such a plan), was acted, all things considered, by Ponzi, and turned out to be notable all through the United States in light of the tremendous measure of cash he took in. Ponzi's unique plan depended on the exchange of global answer coupons for postage stamps; notwithstanding, he before long redirected financial specialists' cash to make installments to prior speculators and himself.

 

[Aniwhyte]

I have lost a lot to ponzi schemes, i lost almost all of my last savings in a ponzi called mmm in some few years ago. I vow never to fall for such a cheap scam again, I was moved by greed.

 

[Sake]

up till today I still wonder how people fall for this ponzi scheme of a thing
Common how can someone possibly tell you that you will double your capital in twenty four hours and you will go ahead to invest in such thing, that is you are heading to disaster
At first ponzi scheme may appear as if it pays but in long run you will regret it
Stay away from ponziy

Because it's tempting when you are seeing someone who made a good amount of money from these schemes. Sometimes you will be convinced because the one who's recruiting you was someone you know and trust and then they will starts showing you how much they earned. Most people like that will not believe that they are into a fraud schemes as long as they are Earning from it they will keep defending it.

 

[Abibatabosede]

The existence of Ponzi could be accepted as illustrated in some history but I believe that this acceptance is just for record sake, this has been in existence for as far as man.it is done in form of game in Nigeria,they call it 'sogun dogoji', meaning turn#20 to#40.

 

[Kinglegend01]

This is a really big question that I have no answer for? But I know that Ponzi scheme is a fraudulent scheme that attract alot of people with the promise of high rate returns. They make it tempting so that when you are see someone or a friend who has benefited from these schemes. Sometimes you will be convinced because the one who's recruiting you was someone you know and trust and then they will starts showing you how much they earned.

 

[Mika]

Fantastic update about the brief history of ponzi, how it got started, and where the name ponzi emanated from. Right from time, I've viewed ponzi investment scheme as a fraudulent type of investment. HYIP is classified under ponzi because it operates on same levels like ponzi, as such I don't waste my time on them.

HYIP is a ponzi scheme, some MLM or multi level marketing companies (not all though) are also ponzi scheme. Pozi scheme is not a business model, it is just a fraudulent mechanism to cheat people and embezzle money. Sadly, the evolution of internet has made it easy to people cheat people with ponzi schemes

 

[Gilead]

I really despise Ponzi scheme and I hope this fraudulent act becomes null and void soon. Only the first set of people that pertake in any Ponzi scheme enjoys their package and it doesn't even lasts. So what's the essence of indulging in it?..

 

[Nurudeen]

Ponzi scheme has caused a whole lots of damage in the life of Investors who they promised to pay some certain amount of ROI at the end of the month. Ponzi scheme started in Germany and it has spread all over the world most especially in underdeveloped countries where poverty Is the order of the day and people are looking for a means to survive.

 

[Sincerem]

HYIP is a ponzi scheme, some MLM or multi level marketing companies (not all though) are also ponzi scheme. Pozi scheme is not a business model, it is just a fraudulent mechanism to cheat people and embezzle money. Sadly, the evolution of internet has made it easy to people cheat people with ponzi schemes

You said perfectly about how ponzi hyip and other misleading investment schemes deceive people online and embezzle their hard earned money. Many fraudulent mechanisms have emanated since internet business keeps trending. Using the process to defraud more and more innocent persons off their money.

 

[Peterlight]

I really appreciate that I wasn't a victim of Ponzi scheme for long, I only tried it it once and since I wasn't so lucky, I have learnt my lesson.

I will not allow any of my family to go into any Ponzi scheme for quick cash.

 

[Ralphjoe]

Ponzi scheme gained traction in my country some years ago through a company known as MMM. This company was being fronted by a Russian known as mavrodi, they came with this scheme and before you know what is going on, everyone jumped on it, it made so many people to have alot of money but unfortunately they crashed and took away alot more people's money.

 

[Seun4luv]

Born in Italy, Ponzi arrived in America nearly broke in 1903 and went on to work various jobs in the United States and Canada, along with stint in prison for forgery and smuggling. Let be careful of fraudulent act.

 

[Alexandoy]

Thank you for sharing the information about the Ponzi scheme. That is also used here in the so called multi-level-marketing but on a different kind. Once A is recruited he would earn more when he recruits new members. When A recruits B then A earns from the sales of B and also from the membership fee. Usually in the multi-level-marketing scheme the membership fee is the target because the products they sell are not really of good quality and has no chance against the commercial competition.

 

[Erik4150]

Ponzi schemes always attract unfortunate investors by preying on their greed and desperation. If people can control their greed, ponzi schemes will not work. But unfortunately more and more ponzi schemes are popping up everyday and people still fall for their scam.

 

[MastetG]

I hate ponzi scheme with perfect hatred and should be banned
In January 1920, Ponzi started his own company, the "Securities Exchange Company," to promote the scheme. In the first month, eighteen people invested in his company with a total of $1,800. He paid them promptly, the very next month, with the money obtained from the newer set of investors.

Post automatically merged: Jan 2, 2021

I hate ponzi scheme with perfect hatred and should be banned
In January 1920, Ponzi started his own company, the "Securities Exchange Company," to promote the scheme. In the first month, eighteen people invested in his company with a total of $1,800. He paid them promptly, the very next month, with the money obtained from the newer set of investors.

 

[giddy]

Ponzi schemes are named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return within a few months for what he claimed was an investment in international mail coupons. Ponzi used funds from new investors to pay fake “returns” to earlier investors.