The Main Characteristics of Ponzi Scams: A Case Study on Israel

Abstract

In the last hundred years, Ponzi frauds have taken place in exactly the same method. The variety of fraud types reflects worldwide the creativity of the fraud initiator, on the one hand, and the motivation of investors for high returns in a short period, on the other hand. The purpose of this article is to analyze the main characteristics of Ponzi frauds and to presents a case study of Ponzi frauds in Israel. To achieve this purpose, a reviewing methodology was established, consisting in main theoretical background, a sample of 30 major Ponzi frauds around the world and a case study on Israel. The main findings are that the most used Ponzi frauds are regarding the use of a false brokerage, both Israel and around the world, while a new trend in Ponzi schemes is the cryptocurrency frauds.

Keywords

• white-collar crimes
• investment fraud
• economic crime
• global financial frauds