Ponzi schemes are actually very old, as early as the 19th century has appeared, but because of human greed is never changed, Ponzi schemes are exposed, but always put on a new suit, in different times, different places, again and again.

What is a Ponzi scheme?

The source of Ponzi scheme is that in history, an Italian named Ponzi promised investors that they could return 40% of their profits within three months, and then used this promise to attract new investors to invest. From the people who just entered the game, they paid 40% to the people in front of them, and the people in front really got 40% of the return. Naturally, they believed that this investment was true. More and more people gave their money to Ponzi, and in this cycle, more than 30,000 investors were attracted in about half a year.

When the scheme is finally uncovered and investors lose their money, it is called a Ponzi scheme. To use our Chinese old saying to explain, is "robbing Peter to pay Paul" deception.

The most intuitive example is the funds that have run away after the crazy harvest in the Hui circle in recent years, such as Volk, IGOFX, Puton PTFX and other platforms, which are typical Ponzi schemes, these platforms can allow investors to get 30% or even higher returns, people are always skeptical at first, and then some people invest thousands of dollars, tens of thousands of dollars to try. The result found that it really received the expected income, and then began to increase investment, pull down the line, and earn dividends.

The capital plate is to continue to use the money of the later entrant, pay the former entrant, so that this scam continues, until one day the boss runs away with a huge amount of money, the website can not be opened, only to find that he has been cheated, this time it is too late.

Why Ponzi Scheme lasts for 100 years

Ponzi scheme originated in foreign countries, but in our country is very popular, even enduring, which is why in the end? There are three main reasons:

First, human greed

Why is the Ponzi scheme so ancient fraud still effective, or human greed, there will always be people who want to make a lot of money for nothing, and the most attractive place of Ponzi scheme is high interest.

Whether it is a traditional pyramid scheme, online pyramid scheme or a new type of scam, each platform promises to invest thousands of yuan to return millions of high interest, many people as long as they hear such a high income, they are immediately tempted, but also desperately pull their relatives and friends together to be cheated. There are also some "smart people" who feel that they have a lot of financial knowledge and can clearly see the Ponzi scheme, and can run away when there is any wind and wind, and do not take over the deal, but in the end, they still suffer.

None of these are caused by human greed, human nature is the most vulnerable to the temptation of interests, and the fraudulent market is created by the weakness of human nature.

2. Liars move with The Times

Fraudsters are constantly evolving their methods. As long as a new policy, a term, you can pull it to do their own "project", in fact, this is not a simple thing.

Like investment projects, blockchain, capital operations, bitcoin and other terms, fraudsters can be well used, not how much they know, but a little better than ordinary people. Fraudsters study psychology, success, and live orderly and regular lives under strict rules and regulations every day.

Like PTFX Puton is cheating in the name of investment, they will always pack their own seamless, PTFX fake pruton, one of Indonesia's top ten securities companies, regulatory qualifications disguised is also very good, vigilance is not high people will believe that it is a formal trading platform.

Third, the psychology of conformity

Everyone in the group will become blind, emotional, emotional. The pattern of pyramid scheme organization pulling the head makes the group grow rapidly, individual behavioral characteristics are submerged, personal thoughts are abandoned, and the people who enter the Ponzi scheme are the early taste of the sweet, they erode people's psychological defense line with high returns and beautiful toxic chicken soup.

Ponzi scheme is just a general term for a kind of financial fraud, in the current Chinese society has evolved a variety of specific forms, all kinds of dirty Ponzi scheme, the method is strange. But all the same, scammers rely on nothing more than our desire to get rich quickly.

Don't think that just because one Ponzi scheme collapses in succession, you won't be cheated! If you don't want to be cheated, remember the old saying: there is no pie in the sky! Do not believe in the so-called high yield, high return, investors should comprehensively evaluate the earning capacity, choose a reasonable rate of return, legal investment channels, cautious investment.