Pyramid Schemes: Red Flags and Risks

Pyramid schemes are fraudulent scams that lure people with promises of quick riches,

but they rely on recruiting new participants rather than selling legitimate products or services.

In these setups, early joiners earn money from fees paid by those they recruit,

forming a pyramid structure where profits flow upward—yet the model collapses when recruitment

stalls, leaving most participants, especially at the base, with massive losses.

Red flags include guaranteed high returns with little risk, intense pressure

to recruit friends and family quickly, and no real product involved, just endless expansion

that math proves unsustainable. Stick to verified investments, and if you spot