How can I protect myself from a Ponzi scheme?

Named for Charles A. Ponzi, who defrauded hundreds of investors in the 1920s, a Ponzi scheme pays off old "investors" with money coming in from new "investors." Example: Investor A gives Promoter ("P") $1,000 on P's promise to repay $1,000 plus $100 "interest" in 90 days.

During the 90 days, P makes similar promises to Investors B and C, receiving $1,000 each from them. At the end of the first 90 day period, P may offer to pay A the $100 "interest" and to return the original $1,000. More likely, he will invite A to "re-invest" the $1000 plus the $100 "interest" for a similar, or higher, return at the end of another 90 days.

Thereafter, A, believing s/he can receive a good return on the investment, is likely to bring other investors to P. P collects a pool of money that he pays out to those wishing return of their money. Eventually, P.

Either disappears with all the "investments" or reveals that the investments went "sour." A major factor in the eventual collapse of a Ponzi scheme is ... more.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.