Fraud and Scam News

Pyramid schemes illegal and have proved to be very risky that can cost a lot of people a lot of money. The initiators of such schemes make their money by having people join the scheme. The funds collected by these promoters are pocketed by them alone.
In a typical pyramid scheme, a member has to pay a certain amount of fee for joining the chain and then the only way left for recovery of this money is to make even more members. The primary reason for such pyramid schemes to flourish is because most often than not such schemes are introduced by relatives, family members are distant friends. Such pyramid schemes do lose steam eventually as they have to be fed constantly with a regular supply of new members (which in most cases dries off very quickly). In countries such as Australia, it has been declared illegal to start or even participate in any such pyramid schemes.
Some of the warning signs or ways to recognize a pyramid scheme are:
Attractive advertisements offering quick money without investing substantial amounts of money.
The products on offer or sale are of little or doubtful value.
You will be required to deposit some amount to purchase the initial stock of goods for ‘promotion purposes’.
Assuring you all the time that it is NOT a pyramid scheme and therefore it is totally legal.

Any of the above signs should be enough to label the scheme as a pyramid scheme and you can take the following steps to avoid being caught in its trap:
Do not let anyone pressurize you into joining any such scheme.
Beware of products or schemes that guarantee instant income.
Using common sense would be the best change of getting rid of such fraud schemes.
Reporting such fraud pyramid schemes to any local authority will be a step towards curbing such pyramid schemes.

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April 14th, 2009 | Tags: Add new tag, email scam, fraud, fraud pyramid scams, fraud schemes, MLM Scams, multilevel marketing scams, online scam, promotion scheme scams, protection against pyramid schemes, pyramid scams, scammers | Category: Action Against Fraud, Anti-Scams, Email Scams, Internet Marketing Scams, MLM Scams, Online Scams, Online selling fraud, Online theft | Subscribe to comments | Leave a comment | Trackback URL