A Ponzi Game, also known as a Ponzi Scheme, is an investment SCAM in which investors are promised high returns with little risk. It is named after Charles Ponzi, who ran such a scheme in the early 20th century. The SCAM works by using money from new investors to pay off earlier investors, creating the illusion of a successful investment. The SCAM eventually collapses when there are no more new investors and the scheme can no longer pay out. The term 'SCAM' is used to describe this type of fraudulent activity.