Pyramid Schemes

Fraud schemes known as pyramid schemes are also called chain referral, multilevel marketing, and matrix marketing schemes. They may be local, national, or international cross-country scams. These schemes lure people into getting involved with product distributorships or franchises in order to make a quick fortune. The schemes use advertisements on the Internet and newspapers, e-mails, telephone calls, postal mail, mass meetings, seminars, and in-person meetings to present fraudulent solicitations. Victims are often those with limited money or poor credit who need to raise cash quickly.

Pyramid schemes are illegal moneymaking scams designed to earn profits by the sale of new distributorships or franchises for a product. Pyramid schemes should not be confused with legitimate multilevel marketing schemes, and it is important to know the distinction. In ...