How to spot a pyramid scheme

Important things to look out for

Stars Insider

22/04/21 | StarsInsider


Ever heard somebody talking about a "pyramid scheme" and wondered what that really entails? Well, at a high level, a pyramid scheme is a business model that recruits new members to a company and promises them commission in return for more recruits. Pyramid schemes are illegal in most countries around the world, but that doesn't stop fraudsters from running them.

While some pyramid schemes are obvious, others are more difficult to detect. This is part of the reason why they are so dangerous and destructive to the lives of those who fall for them.

Luckily, there are some key things to look for if you suspect you may be dealing with a pyramid scheme. Check out this gallery to find out what they are.


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