Ponzi scheme

A Ponzi scheme is a kind of scam where someone tricks people into giving them money by promising them huge profits.They usually tell people that they will get a lot of money back in a short time, much more than they put in.What the scammers don't tell them is that they can only make those profits by getting more people to give them money, and that most of the money is going directly to the scammers instead of to investments. In other words, the scammer is using money from new people to pay back the money of old people, and pocketing the rest for themselves.