When and how did Ponzi scheme started?

[Heatman]

im confused about what MMM is, will it be MMM that from anonymous they will gather out in every November 5th of the year? So sad in your investment this should a lesson for you, us and everyone.

MMM was the name of the ponzi scheme that I'm talking about. If you want to know more about the ponzi scheme, you can easily go to Google and look it up. Type in MMM in Nigeria and I'm sure you can find so many contents about the history of the ponzi in Nigeria and some other countries.

 

[Donolatunji]

The method was invented by Charles Ponzi (1882–1949), an Italian-American. Ponzi established the Securities Exchange Company in December 1919, a company which promised to double the money of investors within 90 days of the initial investment.
In the 1880s, some of the first documented cases were carried out in the United States from 1869 through the "Ladies' Deposit" to fulfill the modern concept of the Ponzi scheme.

 

[Heatman]

The method was invented by Charles Ponzi (1882–1949), an Italian-American. Ponzi established the Securities Exchange Company in December 1919, a company which promised to double the money of investors within 90 days of the initial investment.
In the 1880s, some of the first documented cases were carried out in the United States from 1869 through the "Ladies' Deposit" to fulfill the modern concept of the Ponzi scheme.

I must confess that I have no knowledge about this Charles and his Security Exchange Company which was a ponzi scheme. But one thing which I know for sure is that the Ponzi then by Charles and the kind of ponzi we have now are never the same. I'm sure the initial ones were a lot better.

 

[Hasan Raza]

Because it's tempting when you are seeing someone who made a good amount of money from these schemes. Sometimes you will be convinced because the one who's recruiting you was someone you know and trust and then they will starts showing you how much they earned.

 

[Blessedsam60]

Wow! marvelous! This is an interesting update. Though ponzi scheme is as old as man too. We have been duped at least once from this bad business and billions of dollars have been carted away by fraudsters created this business as a means of alleviating poverty but instead it got worse.

 

[Heatman]

Because it's tempting when you are seeing someone who made a good amount of money from these schemes. Sometimes you will be convinced because the one who's recruiting you was someone you know and trust and then they will starts showing you how much they earned.

It's all greed my dear and greed can kill you one time before you realize what's going on, it will be too late. Although I can also say that being too desperate to make money online is why most people join ponzi schemes and end up being the victim.

 

[Frank]

Ponzi scheme is a fraudulent scheme that attract many with the high rate of return, many people have fallen victim of Ponzi schemes because of the high return they promise to give out and at the long run they run away with your money.
Although I have never fallen prey of any because I Know some warning signal that tells me a business is a scam or not

It is greed and in most cases, pressure from friends that can make one to join a ponzi scheme while expecting to earn a lot of money in the end. It can't be termed criminal because they didn't force anyone to join, but your personal desire to join them that matters.

 

[Heatman]

It is greed and in most cases, pressure from friends that can make one to join a ponzi scheme while expecting to earn a lot of money in the end. It can't be termed criminal because they didn't force anyone to join, but your personal desire to join them that matters.

Yeah, it's greed alright because if you are not greedy, there is no way you could believe that in less than 24 hours, a system will pay you 100% or even 200% of what you invested in it. How possible can that be legit and even our government won't take the state money and invest in it?

 

[Sucrelove]

I really don't know when it started but Ponzi scheme is a fraudulent business that I would not allow anyone to do it I lost a lot. They are lots n lots of Ponzi scheme every where attracting investors with huge sum amount of returns

 

[Frank]

I really don't know when it started but Ponzi scheme is a fraudulent business that I would not allow anyone to do it I lost a lot. They are lots n lots of Ponzi scheme every where attracting investors with huge sum amount of returns

The way they make those ponzi schemes look will make you think that there is nothing wrong with it. I have seen those that used Facebook as a cover up of how you can earn, but at the end of the day, all are scams and a way to dump people of their hard earned money.

 

[Eodine]

Some of the first recorded incidents to meet the modern definition of Ponzi scheme were carried out from 1869 to 1872 by Adele Spitzeder in Germany and by Sarah Howe in the United States in the 1880s through the "Ladies' Deposit".

 

[ronaldlorenzo01]

This is the history of ponzi the name Charles Ponzi was the infamous swindler who payed out returns with other investors' money. The "Ponzi scheme" is named after him. After running a highly profitable and expansive investment scheme, Ponzi was arrested on August 12, 1920, and charged with 86 counts of mail fraud.

 

[Chumzy]

I am sure it dates back to a long time when you check the details on Google but in Nigeria. Ponzi is still a relatively new term which got popular when MMM came into the mix around 2015 or so. Since then it has been one form of ponzi or another and some now come with the mask of affiliate marketing but in reality it isn't.

 

[mubinadaddy]

Ponzi is actually named after charles ponzi who engage in defrauding people using all means and is the same thing happening today. You will only fall into their trap if you are greedy cause ponzi scheme affect mostly the greedy ones who want to puttin 10 to collect 1000.

 

[Heatman]

The way they make those ponzi schemes look will make you think that there is nothing wrong with it. I have seen those that used Facebook as a cover up of how you can earn, but at the end of the day, all are scams and a way to dump people of their hard earned money.

Personally, I don't trust anyone or anything I see on Facebook specifically because it's where I got into the first ever ponzi scheme where I lost money to a scammer called Mercy Cindy of Trendy Group. This lady dupe thousands of people millions of Naira.

 

[Denuola]

Some of the first recorded incidents to meet the modern definition of Ponzi scheme were carried out from 1869 to 1872 by Adele Spitzeder in Germany and by Sarah Howe in the United States in the 1880s through the "Ladies' Deposit". Howe offered a solely female clientele an 8% monthly interest rate, and then stole the money that the women had invested. She was eventually discovered and served three years in prison.[3] The Ponzi scheme was also previously described in novels; Charles Dickens' 1844 novel Martin Chuzzlewit and his 1857 novel Little Dorrit both feature such a scheme.[4]

In the 1920s, Charles Ponzi carried out this scheme and became well-known throughout the United States because of the huge amount of money that he took in.[5] His original scheme was based on the legitimate arbitrage of international reply coupons for postage stamps, but he soon began diverting new investors' money to make payments to earlier investors and to himself.[6] Unlike earlier, similar schemes, Ponzi's gained considerable press coverage both within the United States and internationally both while it was being perpetrated and after it collapsed – this notoriety eventually led to the type of scheme being named after him.[7]

 

[TopSilver]

Everything you said is right though I wanted to add, it may be so true that telemarketers gave it a bigger name later on. There are countries where telemarketing is the only way to make money and a lot of times (and they are good at it too) people try and swindle you for money over the phone. Believe me when I say I am completely positive this has happened so many times that it may have something to do with it.

You would be so surprised how even the biggest Pimp in the world wouldn't have anything on a skinny guy in eastern country to make money. It's not right but I just wanted to point on that in some places they are much better then others. It's rare if anyone you know has ever received a phone call from one telemarketer who is this skilled because most of the time your getting robo calls and calls from people who don't have half a sense to ever swindle you. But happens every day.

 

[Heatman]

Everything you said is right though I wanted to add, it may be so true that telemarketers gave it a bigger name later on. There are countries where telemarketing is the only way to make money and a lot of times (and they are good at it too) people try and swindle you for money over the phone. Believe me when I say I am completely positive this has happened so many times that it may have something to do with it.

You would be so surprised how even the biggest Pimp in the world wouldn't have anything on a skinny guy in eastern country to make money. It's not right but I just wanted to point on that in some places they are much better then others. It's rare if anyone you know has ever received a phone call from one telemarketer who is this skilled because most of the time your getting robo calls and calls from people who don't have half a sense to ever swindle you. But happens every day.

There was a time I got such scam call from a lady, and she was like that my bank account is having technical problems. I should send her my ATM card details and BVN so she can fix it from her end. I was like do I look like a fool to you? You work in bank and all my details are in the bank database, find it yourself.

 

[Bilal0087]

Ponzi scheme is a fraudulent business model where investment from one investor is taken to pay profits to another investor. For example, A is paid with the money collected from B, B is paid with the money collected from C, and this goes on and on until there is someone left to invest. Once there are no investors, the business disappears. The company tells its investor that they have invested in some high yield program, thus are able to pay such a high return, however, this is nothing but a lie. This business is named after an American fraudster called Charles Ponzi. In 1920s, Charles Ponzi created a lot of people and accumulated a lot of money. This business model got his name. However, it was in existence long before Ponzi.
The first kind of Ponzi business model was recorded in Germany and later in the US in the late 19th century.
All of the High Yield Investment Programs operate in the Ponzi scheme.

I believe that every person who comes into online earning and investment might have faced in losses due to ponzi schemes, because with the advancement of Technology and Science hackers scammers and fake people are also increasing scame with innocent people.

 

[Usman Sattar]

The newspaper articles and the audit of Ponzi's Security and Exchange Company destroyed the scheme. The Massachusetts State Banking Commission closed down Hanover Trust, the mutual savings bank Ponzi was president of, but not before Ponzi took about one million dollars to a Boston racetrack to bet on some long shots in hope of winning enough to make his company solvent.