How to not fall victim to a Pyramid Scheme!

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The pyramid scheme has been ongoing for many years, but still, so many people continue to fall for this scheme! Why? Because it’s hard to resist an offer that promises easy money without much effort!

Here’s how to spot a pyramid scheme and steer clear to avoid being defrauded.


- If you ever hear the words “no risk” or “guaranteed returns” then start running! There is no such thing as an investment without any risk. Even if you keep your money under your bed there is still some sort of risk of losing it.

- Almost all pyramid schemes will convince you that you’ll get incredibly high returns. Your best bet is to use the repo rate as a baseline to compare, this is usually 6.75%, so if the return rate is more than that then it’s most certainly a scam!

- Do not be scared to ask the person or broker offering these investment lots of questions. Ask how long they’ve been involved, what qualifications they have, etc. Don’t be shy to interrogate them!

- If you have to introduce other people to the scheme and convince them to join then this is an obvious, sure-fire sign that you’re looking at a pyramid scheme.

- Always ask where your money will be invested and what the performance has been for the past five years. If you cannot get a clear response or are told the information cannot be discussed then it is a red flag that you’re dealing with a pyramid scheme!

Pyramid schemes will feed off of your desire to make a quick bit of cash without much effort, so if it sounds too good to be true, then it is likely a pyramid scheme and you need to start running for the hills!


To learn more about Pyramid Schemes and how to avoid them, please contact our OSINT department on 021 110 0422 or email contact@osint.co.za. Alternatively, you can take a look at our website www.osint.co.za

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