What is a Pyramid Scheme?

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In short, a pyramid scheme is an illegal scheme that promises you will get rich, but in fact, it just ends up costing you money.


You may have heard about pyramid schemes through friends, family or old school pals you haven’t spoken to in years. The scheme will usually convince people to pay to join and then convince others to join and pay as well. In order for people to start making money they need to get a certain amount of people to join, but the truth is that’ll never happen!

Those who are at the top of the pyramid scheme make their money by convincing others to join the scheme, but the truth is they pocket the fees of those who are joining and when the scheme falls apart relationships are damaged over the money that has been lost.

Never promote or take part in a pyramid scheme no matter how amazing it may seem!

Here are some warning signs of a pyramid scheme:

- Someone tries to convince you to join a group, scheme or team where you will need to recruit more people to start making money.
- The scheme involves goods and services with little value that’s only value is to promote the scheme or program.
- There are large upfront costs that you need to pay before you can join.
- The promoter trying to convince you to join claims that it is NOT a pyramid scheme and is completely legal.


Here’s how to protect yourself:

- Never ever let anyone convince you to make a decision about your money or investments.
- Always be wary of schemes and products that are claiming a guaranteed income.
- Remember that your friends or family may try to get you to join a pyramid scheme without actually realising it is one.
- It is ILLEGAL to promote and take part in a pyramid scheme!

If you think you’re involved in a pyramid scheme without realising, then be sure to contact our OSINT department immediately on 021 110 0422 or email contact@osint.co.za or learn more from www.osint.co.za

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