What is a pyramid scheme?

About this episode

You’ve probably seen ads online promising easy money—“Make up to £300 a day using just your phone! Join me and change your life” It sounds tempting but here's the catch, most of the time, these claims are a scam designed to pull you into a pyramid scheme, afterall if making money online were that easy, we’d all be doing it. Pyramid schemes often masquerade as legitimate Multi-Level Marketing (MLM) businesses. While MLMs are legal in the UK and the USA if they focus on actual product sales, pyramid schemes make their money from recruitment alone, with little or no genuine product involved. Participants are asked to pay upfront fees, and the money collected is used to pay commissions to those who joined earlier. What is a pyramid scheme? How can you spot a pyramid scheme? What should you do if you fall victim?  In under 3 minutes, we answer your questions! To listen to the last episodes, you can click here: How can you protect yourself from being mugged? How do sim swapping scams work? What is a 419 scam? A podcast written and realised by Amber Minogue. Learn more about your ad choices. Visit megaphone.fm/adchoices