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Ponzi Scheme originated in the US in the early 20th Century Wherein public were defrauded of millions of dollars by a swindler named Charles Ponzi. The sponsors of various fraudulent financial schemes in Pakistan have employed/are employing the Ponzi technique that adopts the following methods in various combinations:


            Offer unusually high rates of return with slogans like doubling money in a short period. These rates are abnormally higher than the return on investment being offered by genuine, established and recognized investment companies.

            Use money of new investors as and ongoing process for paying the old investors to also create a confidence level.

            Use a cover up legitimate business to provide explanation to investigators including media. The return on legal business in minuscule as compared to pay-offs.

            The sponsors are usually bankrupt themselves while living luxurious life styles and use exceptional convincing power to defraud the ‘hypnotized’ victims.

         In order to know more about such swindlers visit our website at http://www.nab.gov.pk or go directly to http://en.wikipedia.org/wiki/ponzi_scheme or just type ponzi schemes on the search engine.

A public Service Message by the Awareness and Prevention Division, National Accountability Bureau




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