Pyramid Scheme

Members recruit new members with the promise of payment.

How does the scam work?

A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services.

Who does the scam target?

People who are looking to make quick and easy money with little work.
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Who will be hurt?

Those who are recruited generally lose money on the investment.

What is the economic impact?

The is no large-scale economic impact, but personal finances are greatly impacted.
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What makes it believable?

The promise of quick and easy money makes people in desperate situations disregard its believability.

Do you think the average person would fall for this scam?

Most people who are financially stable and have time to think through the offer will not fall for this scam.
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What does this scam rely on to be successful?

This scam relies on greed and desperation to be successful.

What emotion does this scam depend on?

This scam depends on people who are sad and financially ignorant.