Glossary term

Ponzi Scheme

An investment fraud in which the attacker collects funds from investors with promises of high returns, and uses the collected funds to pay certain previous investors back to…

  • Updated May 21, 2022
  • First published May 21, 2022
  • Reading time 1 minute

Definition

Understand the fundamentals, context, and nuances behind this term.

An investment fraud in which the attacker collects funds from investors with promises of high returns, and uses the collected funds to pay certain previous investors back to validate his claims. After collecting enough, the scammer disappears with the funds.