A Ponzi scheme is a type of fraud called investment fraud. It “involves the payment of presumed returns to existing investors from funds contributed by new investors” (6). Investors are usually promised a high rate of return. Scammers attract new investors and pay off their old investors with the new investor's money. Ponzi schemes are named after Charles Ponzi who created the scheme by convincing residents to invest in a stamp scheme. Bernie Madoff is a well-known and not very well-liked Ponzi scheme scammer. He is currently in federal prison. These types of fraud schemes harm hundreds or millions of individuals and families. A Ponzi scheme occurs when someone is tricked into giving them money to invest in something and is promised a high rate of return in a short amount of time. Ponzi schemes can happen anywhere. Scammers might come door to door, send you emails or start a business and entice you to invest. More and more people are starting to learn about Ponzi schemes without actually knowing what the scheme is actually called. It is the elderly who are at risk of being scammed because they are not aware of all the different types of Ponzi schemes and how they are implemented today. Protecting yourself from scams is important. There are many warning signs regarding Ponzi schemes. Any “promise of guaranteed above-market returns” (7) is a clear sign that it is a fraud. The old saying comes into play here, if it's too good to be true, it probably is. A scammer never has a clear story about where your money is invested. If an investor says your money is being pooled, then you should run the other way. Be very cautious about steady returns. Ponzi schemes are almost never registered with the SEC or regulated by the state… half of the paper… ask lots of questions and do your research. Read and listen carefully to the words used. Identity theft is one of the most well-known frauds, and many people try to prevent it as scammers look for new ways to get it. The highest risk groups are university students and children. The main goal is to keep tabs on your finances, your credit score, your bills, and your passwords. Never let anyone know too much about your personal things. Families are usually scammed by other family members because they know where everything is in that family. You have to be careful who you trust and it's sad. Not a day goes by that someone's identity isn't stolen. You can't prevent all fraud, but you can do your best to do so. Learn the warning signs of different types of fraud and find solutions to keep yourself, your business and your family safe financially, emotionally and physically.