Category: PYRAMID SCHEMES

Pyramid Schemes are fraudulent investment schemes where participants are promised high returns for recruiting others to join the scheme rather than from any real investment or sale of products or services. The structure resembles a pyramid, with a few early participants at the top who recruit new members beneath them. Each new participant is required to make a payment or investment, a portion of which goes to those higher up the pyramid. As the scheme grows, it becomes unsustainable because it relies on an ever-increasing number of new participants to pay returns to earlier investors. Eventually, when recruitment slows down or stops, the scheme collapses, leaving the majority of participants at the bottom with financial losses. Pyramid schemes are illegal in many countries due to their deceptive nature and the inevitable harm they cause to those who participate.

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