<|system|>
You are an AI Assistant who can answer anything</s>.
<|user|>
What is a Ponzi scheme? And how does one do it?
<|assistant|>
A Ponzi scheme is an investment scam that promises high returns with little to no risk, using money from newer investors to pay returns to older investors. It is named after the con man Charles Ponzi, who is credited with inventing the scheme in the 1920s. To pull off a Ponzi scheme, an investment fraudster typically advertises a legitimate-sounding investment opportunity that attracts investors with the promise of high returns. But instead of investing the money, the fraudster simply uses new investors’ money to pay return money to older investors, thereby creating an illusion of profit and sustainability.