What is another word for Ponzi scheme?
Pronunciation: [pˈɒnzi skˈiːm] (IPA) 
A Ponzi scheme is a fraudulent investment scheme where returns are paid to earlier investors using the capital invested by newer investors. This scheme collapses once the number of new investors shrinks or when withdrawals exceed deposits. There are many synonyms for Ponzi scheme like pyramid scheme, chain scheme, gifting scheme, and endless chain scheme. Pyramid schemes rely on recruiting a large number of people to join in and recruit even more people while gifting schemes operate similarly to Ponzi schemes but rely on people joining for the purpose of gift exchange. Endless chain schemes are similar to pyramid schemes in terms of recruitment, but the investments typically come in the form of products or services. These fraudulent schemes are designed to defraud unsuspecting investors, and it is important to exercise caution when investing your money.
