Brandon Ankrom, Jack Puskas, and Dakota Szabo
How does it work?
A pyramid scam is where someone gets an investor to give them money and tells them to recruit more people. The more they recruit, the more money that they will get.
Who does the pyramid scheme target?
They will target anybody willing to buy into it. As long as they pay the fee, more and more investors will keep coming.
Who will be hurt and can it have an impact on the economy?
Whoever invests in the pyramid will be hurt and it will have a negative impact on the economy.
What makes it believable? Can I fall victim to the scam?
There are false success stories online that lead people the wrong way . The person running the scheme also goes to great lengths to make it look like a legit multi-level marketing program. If it's convincing enough and with a little bit of advertising, anyone can fall victim to it.
What does this scam rely on?
It relies on new investors to keep paying fees. They never work out because the pyramid gets to big and the person running it won't be able to keep up. Eventually, all that money is lost.
What emotion does the scam depend on?
Greed drives people to fall for this scam over and over.
Examples of a Pyramid Scheme.
Selling telephone cards, buying clubs, chain letters, mail order operations.