Search This Blog

Saturday, 7 March 2015


Fraud Ponzi schemes are a type of illegal pyramid scheme named for Italian immigrant Charles Ponzi, He used the scheme after moving from Italy to the United States in 1903. His original scheme was based on using countries' money-exchange rates to make money, based on international postage stamps. Ponzi duped thousands of New England residents into investing in the postage stamp speculation, and was deluged with funds from investors, taking in $1 million during one three-hour period. However, the money soon stopped being invested in coupons, and went to early investors, and a lot to Ponzi himself.

Ponzi didn't invent the scheme, though. In 1857, Charles Dickens' novel Little Dorrit featured a similar scheme.

In 2008 US Immigration and Customs Enforcement conducted the largest-ever raid of a workplace. They arrested nearly 400 immigrants in Postville, Iowa for identity theft and document fraud.

GlaxoSmithKline pleaded guilty in 2012 to criminal charges of health care fraud and was fined a record US$3 billion.

There was only 1 victim of credit card fraud in Canada 2016. They lost $214.

One of the most prevalent cons around is the Nigerian email scam. Essentially an advanced-free fraud, the con-man promises the email recipient access to the vast fortunes of a wealthy man, royalty, or foreign company if only the recipient can put up some money to help said wealthy man, royal, or company out of some terrible bind. The amount of money lost to the Nigerian scam exceeds three hundred million dollars annually in just the United States and the United Kingdom alone.

No comments:

Post a Comment