Ponzi scheme - A Simple Explanation of the Concept

40 %
60 %
Information about Ponzi scheme - A Simple Explanation of the Concept
Economy & Finance

Published on November 7, 2014

Author: shivanichoudhary142

Source: slideshare.net


This presentation gives a short and simple description of the Ponzi Scheme and the ways to prevent such frauds.

1. PONZI SCHEME A Simple Explanation of Basic Concepts

2. Definition A Ponzi Scheme is a fraudulent investment scam that pays returns to investors from their own money or from money paid in from subsequent investors – rather than from profit it actually makes

3. Working of a Ponzi Scheme 1 | A Fraudster Places an advertisement for a non-existent investment that offers extra-ordinary returns in a short time After receiving the promised returns on their investment, the first investor starts to spread the word to family and friends. The scheme gains credibility | 2 3 | Because there is no actual investment vehicle, there are no profit. The first investor is paid from the money of the other investors

4. Working of a Ponzi Scheme 5 | Unfortunately, because Ponzi Schemes are unauthorized and make no profits, you are very unlikely to recover any lost investment. Typically the fraudster will vanish with investors money or the scheme will collapse as investors realize that they are not receiving the returns they were promised | 6 7 | Because of non-regulation of investment market, these frauds become rich and the investors poor

5. How to Recognize a Ponzi Scheme 1. If you are considering any type of investment, always remember, if its too good to be true, it probably is. High returns can only be achieved with high risk. 2. Ponzi fraudster use vague technical jargon to describe their non-existent investments. 3. The bankers will try to pressurize you. Take decisions with patience and only after checking through all the documents. 4. Resolve any suspicions you might have about the scheme’s authenticity by investigating the company status and contact details.

6. Steps to be taken by Victims 1. FSA (Financial Services Authorities) regulates companies that offer investments to public. 2. Call FSA Helpline Number, 0300 500 5000 3. If you have given your bank account details to any such investment company, immediately contact the bank and deactivate your account. 4. Every decision you make in any scheme, make sure you have written and signed communication with you. Make copies of the same and keep them with you. 5. Spread about such frauds among other people and friends. AND THE MOST IMPORTANT ACT SMART AND PREVENT SUCH FRAUD ACTIVITIES

Add a comment

Related presentations

We apply Feldstein's (1997, 1999) analysis of the interactions between the tax sys...

Rapport Bale III - le texte en français - Comité de Bâle sur le contrôle bancaire

La economía española tiene problemas de 1. productividad del trabajo y 2. de aprov...

El presente trabajo realizará un análisis comparativo del sector de bienes de equi...

- Η προβληματική κατάσταση της ευρωζώνης - ABS -αγορά “τιτλοποιημένων απαιτήσεων...

Neste artigo, analisa-se a estratégia política econômica adotada pelo novo gove...

Related pages

SEC.gov | "Ponzi" Schemes

Ponzi schemes tend to ... What are some Ponzi scheme "red flags"? Many Ponzi schemes ... Earn high investment returns with little or no risk by simply ...
Read more

Ponzi scheme - Simple English Wikipedia, the free encyclopedia

Once a Ponzi scheme gets too ... Charles Dickens wrote a book called Little Dorrit about a scheme like this. The scheme is a simple ... Ponzi’s Scheme: ...
Read more

Ponzi Scheme: Definition and Description - About.com Education

A Ponzi scheme is a scam ... though the concept was well known prior to Ponzi. ... A relatively plausible explanation of how the ...
Read more

The Madoff Fraud KLAR - Chalmers

Ashort&explanation&of&the&Ponzi&scheme&carried&out ... for those who do not entirely grasp the concept of a Ponzi Scheme and ... The Madoff Fraud_KLAR.docx
Read more

Ponzi scheme - Wikipedia, the free encyclopedia

A Ponzi scheme is a fraudulent investment operation where the ... Ponzi schemes can survive simply by persuading most existing participants to reinvest ...
Read more

Ponzi Scheme legal definition of Ponzi Scheme

What does Ponzi Scheme mean in law? ... Ponzi Scheme; Ponzi schemes; Ponzi schemes; Ponzi schemes; Ponzi schemes; Ponzi, Charles; Ponzio reaction; Ponzio ...
Read more

Ponzi | LinkedIn

A Ponzi scheme is a fraudulent investment ... Ponzi scheme - A Simple Explanation of the Concept. 197 Views. MasterSeven. Ponzi scheme money game. 145 ...
Read more

Ponzi Scheme | LinkedIn

View 1149 Ponzi Scheme posts, ... both saw their Ponzi schemes fall apart and after the dust ... Ponzi scheme - A Simple Explanation of the Concept. 249 Views.
Read more