The Ponzi scheme is a type of fraudulent tactic or scam, named after Charles Ponzi. It first started off by Ponzi who was born in 1882 in Italy. Looking forward to a better and more fortunate life, he had moved to America in 1903. However, his desire to seek fortune led him down to the path of crime and fraudulent tactics rather than gaining with integrity and honesty.
How did he make the scams work exactly? He would take money from new investors and pay dividends to older investors, keeping a lot of profit to himself. Out of all the scams, he was able to make a total of 193 million US dollars, which is just an estimate.
We must note though that this scam was not completely new. But since it was Ponzi that took this game to the hall of fame, thus it has been named after him ever since. Have a look at the infographic below to see how the Ponzi scheme has been carried out by others as well, as it completes its 100 years.
Infographic by: CompareTheMarket