Pyramid schemes are a widespread form of scam where members make money by enrolling more people to buy-in. Normally, the originator advises an initial group of people to buy in and advertise for the scheme. They are then persuaded to enroll others and guaranteed part of the money those people invest, while the founder also takes a share.
Most of the time, more than 80% of the participants of the schemes lose all their money. Even though pyramid schemes are illegal in most countries, they are hard to detect. Victims are often embarrassed at the end and do not report the fraud.
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