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The purpose of this paper is to analyse the regulation of the financial crime of Ponzi scheme in Mauritius. Contrary to money laundering which has a legal framework to combat it, for Ponzi scheme, there is no specific legal mechanism to combat this particular financial crime. Therefore, the aim of the paper is to provide for an analysis of Ponzi scheme which includes, inter alia, the definition of a Ponzi scheme, its modus operandi and how it should be tackled. Focus will be placed on devising a specific legal framework for it in Mauritius.

The research method used to conduct this research and write this paper is a black letter legal research method. An analysis of several laws and cases is carried out so as to provide for the legal background of the research.

The investigation conducted in this paper will lead to the conclusion that Mauritius has to devise a law which will specifically combat Ponzi schemes. This law shall provide for the ways to counter this financial crime as well as the duties of the various financial supervisory bodies.

The paper provides for an analysis of the operation of Ponzi scheme in the Mauritian context. The paper also examines the existing legal framework that combats this financial crime in Mauritius and highlights its strengths and weaknesses.

This study aims to empirically reveal how marketing mix elements are used in Ponzi schemes to trigger herd behavior. Thus, it was aimed to determine how Ponzi schemes use marketing tools to approach and persuade victims. Clarifying this issue is vital in identifying critical points in diagnosing and detecting Ponzi schemes and in de-marketing practices to be used against them.

In this study, content analysis was used to analyze in-text expressions most practically. The population of this study is the Ponzi scheme cases that took place in Turkey between January 1, 2016, and May 31, 2023, which appeared in the press. The study sample consists of 44 cases accessible in terms of parameters, including the research subject in the research population.

In order to reach the widest audiences, Ponzi schemes have generally emerged in metropolitan cities that produce a significant portion of the country's gross national product. The minimum fee to enter these systems is usually between 40 and 50 USD. Although Ponzi Schemes appear to be a financial product, the product they claim to make money is usually intangible and complex. Furthermore, the system's return rate is always higher than the market rate. It is seen that other people influence people in their social and professional environments. Promotion in Ponzi schemes is carried out by word of mouth, social media, direct persuasion, introductory meetings and individual communication. When the herd behavior patterns in Ponzi are examined, it is seen that most of them are “Heuristic Simplification” and “Social Interaction.” As a result, it has been understood that marketing mix elements are used consciously and actively to trigger herd behavior in Ponzi schemes.

The most important limitation of the study is that the data compiled about the cases are not standardized, and the newspaper reports did not provide some details at a sufficient level.

Using a qualitative method and an evidence-based interdisciplinary approach, this study reveals how marketing mix elements are used in Ponzi schemes, a type of financial fraud. In addition, the research is original in that no other study with similar content and scope was found in the literature.

Investigate how leaders of illegal organizations build and maintain positive reputations and how the deaths of these firms impact groups of external stakeholders.

We conduct a forensic analysis of nine firms in eight different countries by leaders who appeared to be highly successful corporate citizens but who turned out to be operating illegal Ponzi ventures.

These illegal firms built positive reputations by engaging in activities that enhanced perceptions of their firms’ perceived quality, gaining certifications and approvals from influential external individuals/organizations, engaging in philanthropic activities, and affiliating with high-status actors. Death of these nine firms had profoundly impacted external stakeholders resulting in investor devastation, a toxic environment of mistrust, damage to reputations of anyone affiliated with these illegal firms, and a major earthshake to the philanthropic community.

Extends Rindova et al.’s (2005) research on how leaders use signals of quality and prominence to build reputations in the context of illegal organizations. Philanthropic activities are added as a reputation-building mechanism used by illegal organizations. The results draw attention to the need to examine how the death of illegal organizations affects a variety of external stakeholders, both individuals and organizations.

Leaders of illegal firms can be quite successful in building positive reputations and this success exacerbates the negative consequences that occur when the firms collapse.

Provides a qualitative study of reputation building and the extensive impact on stakeholders of the dissolution of illegal ventures.

This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube^® (in the form of a live video presentation) exhibits any of the red flags from the checklist.

The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes.

A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist.

The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags.

The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.

The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.

The study provides a red flag checklist for cryptocurrency Ponzi schemes.

This paper aims to explore factors influencing Vietnamese people’s susceptibility to fraud through cryptocurrency Ponzi schemes.

This study uses the gullibility theory, the theory of planned behavior theory, the traditional theory of finance and the theory of financial behavior, to develop a questionnaire which is then sent to respondents who are Vietnamese individuals. Subsequently, the partial least squares structural equation modeling approach (PLS-SEM) is used to analyze 370 collected responses.

This research shows the important roles that trust, risk appetite and knowledge of Ponzi play in respect of fraud susceptibility, among which trust has the highest positive impact. Moreover, there is no evidence of relationships between Vietnamese people’s susceptibility to fraud via cryptocurrency Ponzi schemes and attitudes toward investment scams, knowledge of investment or knowledge of Ponzi schemes.

This paper collects only 370 valid responses, which raises some questions regarding the diversity and representativeness of the survey sample.

This study provides evidence on factors affecting Vietnamese people’s fraud susceptibility to cryptocurrency Ponzi schemes, which helps both authorities and individuals to be vigilant against investment scams.

This research proposes several recommendations to prevent investment scams in cryptocurrency trading, from the perspective of state regulators and individuals.

This working paper provides a new approach using PLS-SEM to build a theoretical framework for the possibility of becoming victims of investment scams in Vietnam using a combination of different theories from criminology and finance.

This paper aims to identify psychological factors that influence people to be involved in Ponzi and pyramid schemes.

A psychological approach to finance or behavioural finance is applied in this research because of the assumption that human beings are not always rational. The sample consisted of 98 investors in 11 cities in Indonesia who were or had invested in an investment program with a Ponzi or pyramid scheme. The snowball sampling technique was applied.

The conclusion is that optimism (emotional bias), confirmation bias, representativeness bias, framing bias and overconfidence (cognitive bias) positively influenced investment decisions related to Ponzi and pyramid schemes.

The novelty aspect of this research is the implementation of a behavioural finance perspective to answer and express the fascinating phenomenon of Ponzi and pyramid investment schemes.

This paper aims to analyze the attributes of Ponzi schemes (“Ponzis”) to determine whether they are a unique class of financial fraud.

The authors apply the disposition-based fraud model to classify and differentiate the attributes of Ponzis. This classification exercise helps comprehend the distinct drivers of Ponzis.

Fraud risk factors of Ponzis are different from those involved in other financial frauds. Four propositions about risk and risk mitigation measures are developed.

The research approach used is conceptual, not empirical. However, the insights from this exercise should inform how different Ponzis are from other financial frauds and why they should be treated as a separate class for prevention and enforcement. In turn, this may trigger an interest in empirical research focused on the unique risks of Ponzis.

Knowledge of risk factors unique to Ponzis will permit a consideration of customized risk mitigation measures to prevent or detect Ponzis. Enforcement actions can also become more effective because of a distinct risk-based classification of Ponzis.

The prevention of damage from Ponzis hinges upon how well prospective victims are educated to become aware of signs of Ponzis. This should lead to the more effective protection of investors from victimization from Ponzi schemes.

The implicit understanding that all financial frauds are alike and that the risk-factors involved are substantially the same across all classes of fraud is challenged. This revelation opens opportunities to add value through focused research on Ponzis as a distinct class of fraud.

This paper aims to examine the nature and operations of the two main Ponzi schemes (DKM Diamond Micro Finance Company and Menzgold Company Limited). It explores how such dubious schemes were able to circumvent financial regulatory bodies and their impact on the social, political and economic spheres of Ghana.

The paper adopts both quantitative and qualitative research approaches and relies on secondary sources of data from the Bank of Ghana, World Bank and textbooks, etc.

It was found out that inadequate supervisory role by financial regulators was a factor that made these schemes thrive in Ghana which had dire consequences on the socio-economic of the country.

This is the first paper that explores the major Ponzi schemes in Ghana.

Most scientific research has focused on understanding Ponzi schemes from the point of view of the schemes and their operators, based on qualitative analysis. This paper aims to analyze Ponzi schemes from the perspective of their investors, emphasizing behavioral aspects, which have been little explored in the scientific literature, especially in quantitative research. In this way, the authors sought to understand the effects of heuristics and cognitive biases in understanding investor behavior.

A logistic regression was carried out with Brazilian investors, some of them participants in Ponzi schemes, who answered a structured questionnaire by means of a survey.

The authors found that social pressures, overconfidence and deliberate ignorance lead to credulity, generating little risk analysis and the desire to make a lot of money quickly.

Helping investors improve their levels of information through financial education and self-knowledge about their behavior. Contribute to the competent authorities in the search for improvements in the information displayed to investors.

Understanding the mechanisms used when making a financial decision from the point of view of investors in general, but especially those exposed to Ponzi schemes, has the mission of enlightening them about the importance of financial education and the weight of psychological factors so that they can reduce the effects of heuristics and analysis biases when faced with a financial decision.

The basis of this work will be the inclusion of psychological variables and financial education, adapting existing models in an attempt to demonstrate the effects they may or may not have on mental accounting in the specific case of investors