What is a Ponzi scheme?

Tim Bennett explains 'Ponzi' fraud schemes: how to spot them, what the three key ingredients are, and how you can avoid becoming a victim.

Tim Bennett explains 'Ponzi' fraud schemes: how to spot them, what the three key ingredients are, and how you can avoid becominga victim.

See also MoneyWeek's financial glossary.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.