Investopedia explains pyramid schemes, how they work, their different forms, and how people can avoid these fraudulent money ...

Ponzi and pyramid schemes are both forms of financial fraud that share many characteristics. However, there are distinct differences in how they operate.

What Is a Ponzi Scheme? Ponzi schemes typically lure in investors by promising high returns with little to no risk. Because initial investors often see high returns at first, early Ponzi schemes often ...