Ponzi schemes still pull in victims thanks to social media, influencers

Technology makes it easier for scammers to reach potential victims who are just a few clicks away from being lured into bogus investment schemes, he said.

"Back in the old days an investment had a lot to do with word-of-mouth credibility. These days they use celebrities or actors to endorse products and the practice has become widespread.

"Moreover, punishment isn't severe, so scammers who manage to hide their ill-gotten gains can enjoy the stolen money once they get out of jail," he said.

Mr Sungsidh said people who are targeted and vulnerable to scams are not poor, but middle income earners.

Scammers usually target people who chase get-rich-quick investment schemes because people measure success based on the money they earn.

When stock or cryptocurrency trading does not make them rich quickly enough, they are more likely to be drawn to investments that promise high returns in a short period.

Scammers will make attractive payments in the early stages to build trust and some investors will put in more, or invite others to join the investment. After this they will start speculating about how much more they can make and ignore any suspicious signs.

Scams can make some small-scale entrepreneurs bankrupt and pose threats to the economic foundations of society, he said. "Authorities must educate people, but sometimes greed gets the best of them," he added.

Varakorn: Focus on household debt

Varakorn Samakoses, economist and rector emeritus of Dhurakij Pundit University, says five elements are at play that make Ponzi schemes thrive and succeed. First among them is low interest rates that prompt investors to look for new income streams. However, many find themselves caught up in financial scams.

The second element is get- rich-quick mindset and this works in favour of scammers. Another element is overspending which is reflected in household debts. The need to pay off debts puts many on a course for poor decisions.

"Internet and technology also play a large role in the spread of online scams," he said.

In the 1980s, when the "Share Mae Chamoy" scam or Chamoy chit-fund run by the infamous Chamoy Thipyaso was around, investors had to get in line. In this day and age, users of smart devices are bombarded with scams posing as investment opportunities.

The fifth element is a lack of proactive actions from authorities and victims' reluctance to come forward out of embarrassment or suspicion they won't get their money back.

"Many people know it is a Ponzi scheme but they believe they can get out of it before it collapses. When things go sideways, scammers threaten them, saying they won't get their money back if they go to police. I think there are scams that go unreported, large and small," he said.

He said a successful online scam leads to imitations and the use of mule accounts makes them even easier to operate. Some people also are too trusting and only believe what they want to believe, he said.

Mr Varakorn called on the government to get tough with scammers and those who are accessories to the crime, while tackling illegal lending and gambling-induced debts at the same time. Many people turn to illegal lending charging high interest rates and use the money to invest in what turned out to be scams.

"It is time to get tough and track down and recover the stolen money as much as possible. Otherwise some people won't mind spending a few years in jail in exchange for money they have swindled," he said.