Ponzi scheme- It refers to a fraudulent act where an operator convinces and attracts investors to invest in their money in a scheme promising that their money will be invested and they will earn a bigger profit in a short period of time as compared to any other investment on the market.

In fact, no investment is being made and the existing customers benefit from a sum of money upon the recruitment of new investors, from the deposit made by them. This type of scam relies on continuous recruitment of new investors.