Financial fraud is defined as an intentional act of deceiving someone concerning financial transactions for the purpose of personal gain. Financial fraud is a crime and it is also a violation against civil law. Most of the time financial frauds are done by those white collar criminals like business professionals that have enough knowledge in financial transactions. Over the years, we have seen financial frauds and there would be likely more in the future until we learn how financial fraudsters and schemers work.
We often hear Ponzi scheme but who is Ponzi? Charles Ponzi is an Italian born con artist who promised new money scheme for his investors. He used international reply coupons (IPC) and exchanged it for airmail postage stamps abroad. He promised 50% profit within 45 days and 100% for 90 days.