Charles Ponzi [1920] sold postal reply coupons for arbitrage {Ponzi scheme}, mostly to Italian immigrants. However, coupon supply was small, so money came from new buyers paying previous buyers {pyramid scheme}.
Person 1 begins talking to Person 2. Person 3 shows the two something valuable and offers to split it among them.
Person 1 says Person 3 should first try to find owner. Person 3 gives the valuable to Person 1, who secretly exchanges it with identical but worthless object or envelope {pigeon drop}.
Person 3 says that the two should give him something valuable, so they will not run off with the valuable. The two give money or something to Person 3, who leaves.
Person 1 gives the worthless stuff to Person 2 to hold while Person 1 goes to look for Person 3.
Now Person 2 is alone, having lost money or something, and the others are far away before Person 2 can call police.
Outline of Knowledge Database Home Page
Description of Outline of Knowledge Database
Date Modified: 2022.0225