1. Scams
  2. Investment Scams
  3. Pyramid Schemes

Pyramid Schemes

Last updated

In a pyramid scheme, the money mainly comes from new members, not from selling something people actually want. You pay to join, for example for a starter kit or a licence, and are promised big profits if you recruit more people. A few at the top make money. Most further down lose what they've paid.

Warning signs

  • You have to pay to join.

  • There's more talk about recruiting new people than about the product itself.

  • You're promised quick and large earnings.

  • The offer comes from an old friend or someone on social media who suddenly gets in touch.

How do you avoid this?

  • Ask where the money comes from. If it comes from new members, it's a pyramid scheme.
  • Never pay to start working or selling.

Has this happened to you?

  • Stop paying in money and don't recruit anyone else.
  • Contact your bank if you've paid recently. Sometimes a payment can be stopped.
  • Report it to the police at polisen.se or call 114 14.
  • pyramid scheme
  • ponzi
  • investment
  • recruitment
  • mlm

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