What should be done to help ensure that Ponzi schemes like t

What should be done to help ensure that Ponzi schemes like this one do not happen in the future?

Solution

Solution :

In 1920 , Italian immigrant Charles Ponzi raised money from new investors and used it to pay the fictitious profits of prior investors. He claimed to be arbitraging international postal reply coupons against stamps, but in fact he was running a scam. Forty thousand people were swindled. Ponzi made $ 240,000 a day on the scheme - equivalent to $ 2,700,000 in today\'s dollars. Ponzi schemes did not end with the arrest of Charles Ponzi . On average , a Ponzi scheme was uncovered every four days between 2008 and 2013 resulting in total loss during that period of over $ 50 billion .

Steps to prevent Ponzi Scheme : -