Meaning of the word "ponzi scheme" in English

What does "ponzi scheme" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

ponzi scheme

US /ˈpɑːn.zi ˌskiːm/
UK /ˈpɒn.zi ˌskiːm/

Noun

a fraudulent investment operation where the operator pays returns to earlier investors with money taken from later investors

Example:
Many people lost their life savings in the elaborate Ponzi scheme.
The financial regulator issued a warning about a new potential Ponzi scheme targeting retirees.