A Ponzi Scheme is a type of fraudulent investment scam where unsuspecting victims are promised high returns on their investments in an implausible manner. This form of fraud involves an operator collecting money from new investors, redistributing the money to existing investors as “hushed” returns, and then keeping the rest for themselves. By luring new investors with false promises of huge, yet nonexistent profits, Ponzi schemes perpetuate larger, complex webs of fraud that can cause far-reaching financial destruction.