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 a particular …

What Is a Pyramid Scheme? A pyramid scheme is a business structure that pays more for recruiting new members or distributors than it does for selling actual product. Each of these new members …

Jan 9, 2026 · Investopedia explains pyramid schemes, how they work, their different forms, and how people can avoid these fraudulent money traps.

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 …

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 participants.

Sep 1, 2023 · This comprehensive guide covers the history, legal implications, and alternatives to pyramid schemes. Learn how to identify, avoid, and combat these scams.

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 business model that …

6 days ago · A federal jury convicted a Frisco couple of conspiracy, wire fraud, and money laundering in a $25 million pyramid scheme tied to the COVID-19 pandemic.

Guide to what is the Pyramid-Scheme and its Meaning. Here we discuss pyramid-scheme features, types, and examples.

Jul 23, 2025 · A pyramid scheme is a fraudulent investment scam that recruits members via a promise of high returns for enrolling others into the scheme rather than from any real profit earned. Pyramid …