Ponzi schemes: Why are people still vulnerable?

Even after putting various financial regulations in place, the government could not put a stop to the evil of financial illiteracy with people easily falling prey to Ponzi schemes, which are financial traps. The word Ponzi is attributed to Charles Ponzi, an Italian con artist, who had accumulated immense wealth in the early 20th century by organising such scheme. From then till now, people are lured looking at the astounding returns that Ponzi schemes offer without realising its consequences.   Why do people fall prey to such schemes? “It is the lure of big money that attracts investors towards Ponzi schemes. Despite having stringent legislations and literacy programmes, there is hardly any decrease in the number of financial frauds,” said Rahul Agarwal, Director (Wealth Discovery), EZ Wealth.  “Everyone wants to make money quickly and investing in such...