» Ponzi scheme
During the last few years you may have heard mention of the Forex scam in the media. Many people have already been hurt by this type of scam and there seems to be no decrease in the number of people being caught by it. One reason why so many people seem susceptible to a Forex scam is due to a lack of knowledge about how it works.
The Ponzi scheme is probably the most popular financial scam there is. This type of fraud not only affects those people who are naïve to investments but has also been used successfully on some of the biggest investors in the world. It can take a lot of time before a Ponzi scheme becomes unmasked and during that time a lot of damage can occur. People have been known to lose all their savings and businesses have gone bust because of this scam. It is called the Ponzi scheme because this is the name of the fraudster who brought it to the public’s attention back in the 1920s in the United States; it has probably been around for much longer time than this though. Some experts warn that these scam investment firms make a lot of effort to look like a traditional firm.
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