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 …

Apr 30, 2025 · 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.

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 one …

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 …

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.

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 investment …

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 …

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.

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.

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