Ponzi scheme

noun

Pon·​zi scheme ˈpän-zē- How to pronounce Ponzi scheme (audio)
Synonyms of Ponzi schemenext
: an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks

Examples of Ponzi scheme in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In fact one of the officials of the radical John Birch Society made the exact same claim charging Social Security was a Ponzi scheme in the 1950s. —Stanley S. Litow, New York Daily News, 13 Apr. 2025 Is Social Security a Ponzi scheme? —Stanley S. Litow, New York Daily News, 13 Apr. 2025 Continue reading … -- IN OTHER NEWS FOOL ME ONCE – Kevin Bacon is ‘more careful’ after losing money in infamous Ponzi scheme. —FOXNews.com, 7 Apr. 2025 Kevin Bacon made some rare comments about losing money in Bernie Madoff’s Ponzi scheme in the 2000s. —Elizabeth Stanton, FOXNews.com, 6 Apr. 2025 See All Example Sentences for Ponzi scheme

Word History

Etymology

Charles Ponzi †1949 American (Italian-born) swindler

First Known Use

1920, in the meaning defined above

Time Traveler
The first known use of Ponzi scheme was in 1920

Rhymes for Ponzi scheme

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Browse Nearby Words

pony up
Ponzi scheme
ponzu
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Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 22 Apr. 2025.

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Legal Definition

Ponzi scheme

noun
Pon·​zi scheme ˈpän-zē-ˌskēm How to pronounce Ponzi scheme (audio)
: an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability
Etymology

Charles A. Ponzi (ca. 1882–1949), Italian-born American swindler

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