Pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market …

4 days ago · A pyramid scheme is a fraudulent investment scheme in which participants make money primarily by recruiting new investors rather than through legitimate business activity or …

When fraudsters attempt to make money solely by recruiting new participants into a program, that is a pyramid scheme, and there is only one possible mathematical result – collapse. Imagine if …

Nov 29, 2025 · Define pyramid schemes, learn the key differences from legitimate business models, and identify the red flags of financial fraud. A pyramid scheme is a fraudulent …

A pyramid scheme is an unsustainable, illegal business model where investment returns are typically from the principal of investments or membership fees instead of from the underlying …

A pyramid scheme is a fraudulent business model that seeks to funnel revenue from recruited members to the scheme’s organizers by promising payments to members for recruiting new …

A pyramid scheme is a channelized system of recruiting members and promising them huge returns if they hire new participants and obtain entrance fees from them.

PYRAMID SCHEME meaning: 1. a way of deceiving investors (= people giving money to a company hoping to get more back) in…. Learn more.

Oct 24, 2025 · The meaning of PYRAMID SCHEME is a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants.

Sep 1, 2023 · A pyramid scheme is an illegal business model that promises participants high returns through recruiting others to join the scheme, rather than by selling products or services.