Pyramid schemes—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market …

3 days ago · Investopedia explains pyramid schemes, how they work, their different forms, and how people can avoid these fraudulent money traps.

If you are offered compensation in exchange for doing little work such as making payments, recruiting others, or placing online advertisements on obscure websites, you may be part of an …

Dec 9, 2025 · Businesses that involve selling products to family and friends and recruiting other people to do the same are called multi-level marketing (MLM), network marketing, or direct …

A pyramid scheme is a fraudulent business model that seeks to funnel revenue from recruited members to the scheme’s organizers by promising payments to members for recruiting new …

Nov 29, 2025 · Define pyramid schemes, learn the key differences from legitimate business models, and identify the red flags of financial fraud. A pyramid scheme is a fraudulent …

A pyramid scheme is an unsustainable, illegal business model where investment returns are typically from the principal of investments or membership fees instead of from the underlying …

2 days ago · A federal jury in Sherman, Texas convicted a married couple on Thursday for operating a multi-million-dollar pyramid scheme during the COVID‑19 pandemic.

Jul 23, 2025 · A pyramid scheme is a fraudulent investment scam that recruits members via a promise of high returns for enrolling others into the scheme rather than from any real profit …

Guide to what is the Pyramid-Scheme and its Meaning. Here we discuss pyramid-scheme features, types, and examples.