Ponzi scheme

Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money. Instead, they use it to pay those who invested earlier and may keep some for themselves.

( Ex : A company promises 20% return per to its members and collect money from them. Then by using That invested money as a testimonial of Genuineness They lure New investors They pay some of the money to the old investors and Keep some with themselves )