One of these well-known scams is Ponzi. Ponzi is nothing but a classic financial pyramid. Its scheme is to encourage new participants to invest big money. As new members continue to invest, the operations of the pyramid work smoothly. However, when the new members stop investing in projects, the pyramid breaks down. Worse, the founders, who knew all along that this stagnation would come, get lost even before this happens. Worst, they have with them all the money that they have collected out of the investments of new members. They have anticipated for it, since the moment they saw that they are not getting the same regular interests on their accounts.