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What Is a Pyramid Scheme? How Does It Work? - Investopedia What Is a Pyramid Scheme? A pyramid scheme is a fraudulent investment where participants make money primarily by recruiting new investors rather than from legitimate businesses
Pyramid Schemes - Investor. gov If you are offered compensation in exchange for doing little work such as making payments, recruiting others, or placing online advertisements on obscure websites, you may be part of an illegal pyramid scheme
How Pyramid Schemes Work - HowStuffWorks A pyramid scheme is any "business opportunity" in which the only real way to make money is to recruit more salespeople If recruiting new salespeople is the only way to make money, then those who get into the game late will never be able to find enough new recruits to recoup their money
What is a Pyramid Scheme: Uncovering the Truth - Spark International A pyramid scheme is an illicit business model that relies on recruiting others into the scheme rather than genuine product sales These deceptive practices are subject to severe legal actions and penalties to protect consumers from financial harm