Ponzi schemes are a type of social network where investors are recruited by a variety of social actors. This study uses network analysis to investigate whether the type of social tie that influenced victims of the Eron Ponzi scheme to invest is associated with the different harms victims experienced from their involvement in the fraud. The results reveal that trust in social ties is associated with increases in many of the types of harm reported by victims. The findings also reveal that victims who were influenced to invest by multiple types of social ties generally reported lower levels of harm.
Link to full text on Canadian Journal of Criminology and Criminal Justice