Ponzi schemes are detrimental to society. This is due to the fact that major financial losses are incurred and also because of the absence of trust that clients feel towards the business in general.<\/p>\n\n\n\n
Countless people have fallen prey to the Ponzi schemes and have lost substantial investment amounts in the fraud. Targets range from low-income to high-income individuals as well as businesses and non-profit establishments.<\/p>\n\n\n\n
Organisations are usually struck the hardest due to the substantial amounts of investments they are capable of making. For e.g. In the Madoff scandal, many non-profit organisations lost millions after the scheme was exposed.<\/p>\n\n\n\n
If they invest early enough, a number of investors do essentially make money. The source of this money essentially comes from new investors. Others may suffer the loss of their total life savings in these scandals.<\/p>\n\n\n\n