Pyramid Scheme Scam

Pyramid schemes are scams that promise easy money if you pay to join and then recruit other people to join after you. Instead of selling real products or services, they rely on new members putting in money, which is then passed up to earlier participants. In most cases, only the people at the very top or those who recruited early make money. Almost everyone else loses what they paid and often feels pressure to involve friends and family.

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Primary example

How this scam works

  1. 1

    You are invited to join a group or opportunity that promises quick, guaranteed, or 'special' returns, often using phrases like 'community wealth,' 'blessings,' or 'exclusive club.'

  2. 2

    You are told you must pay a membership fee or buy into a 'starter kit' or digital asset before taking part.

  3. 3

    To earn rewards, you must recruit more people, who must also pay similar fees. The cycle continues, with each new participant pressured to find others.

  4. 4

    Sometimes, the scheme is disguised as a faith-based group, investment club, or self-improvement program to appear more trustworthy.

  5. 5

    Fake testimonials and staged success stories are used to convince you that real people are making money.

  6. 6

    As the scheme grows, it becomes harder for new members to recruit enough people. Eventually, payments dry up and most people lose their money.

✓ Do this

  • Be cautious of any group or opportunity that requires you to pay money upfront and then recruit others to earn rewards.
  • Look for clear signs of real products or services being sold. If there aren't any, it's a major red flag.
  • Ask independent people for advice before investing any money or recruiting others.
  • Search the internet for the group name and the words 'pyramid scheme' or 'scam' to see what comes up.
  • Report the scheme to your local authorities if you think you or someone you know has been targeted.

✗ Avoid this

  • Don’t pay money just to join a group or program that promises you’ll make money for recruiting other people.
  • Don’t feel pressured to involve your friends, family, or church if you’re not completely sure the opportunity is legitimate.
  • Don’t trust testimonials or 'winners' you see online—they may be staged or paid promoters.
  • Don’t give out your personal information if something feels off, especially if the group is secretive about its founders or business.

Quick tip: Verify independently

Don’t call numbers or click links in unexpected messages. Go directly to the company’s official site or app and contact support from there.

See common red flags