In this episode we take you behind the scenes of a ponzi scheme, where unbelievably good returns are offered to investors, the scheme operator seems to be trustworthy – but it’s all smoke and mirrors.
ASIC investigators Kaan Finney and David McArthur explain how ponzi schemes work, how operators attract investors, how ASIC investigates and shuts down these schemes and most importantly, how can you can avoid getting caught up in a scheme.
A ponzi scheme is an investment scam where the promoter convinces people to invest in the scheme. Money is deposited by early investors and used to pay the first round of returns. However, new money invested is used to pay older returns to investors. People are led to believe there is an investment because of this when often there actually is no investment at all or the investment is not what they think it is.
There are practical tips on how to avoid ponzi schemes and other types of investment scams on ASIC’s MoneySmart website or you can subscribe to our media releases to find out about the latest matters we are investigating at ASIC.
And if you have feedback on this podcast, we’d love to hear your thoughts. Send us a tweet to @ASICmedia
Episode 65: Crypto-assets for first time investors
Episode 64: Markets enforcement outcomes
Episode 63: ASIC enforcement update July to December 2020
Episode 62: Corporate governance enforcement outcomes
Episode 61: Risky business: land banking property investment schemes
Episode 60: Holes in the safety net: A review of TPD insurance claims
Episode 58: Oversight of non-financial risk
Episode 57: Are car insurance investigations treating consumers fairly?
Episode 56: ASIC's case against former director Bradley Silver
Episode 55: ASIC enforcement outcomes, January to June 2019
Episode 54: The future of financial services
Episode 53: Creating Shared Value
Episode 52: The regulatory toolkit
Episode 51: ASIC's case against former financial adviser James Gibbs
Episode 50: Balancing consumer choice and protection
Episode 49: ASIC's case against hacker Steven Oakes
Episode 48: International standard setting for insurance supervisors
Episode 46: ASIC enforcement update July to December 2018
Episode 45: Product intervention powers and design and distribution obligations
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