Pyramid schemes have caused millions of Americans to lose money. The promise of financial gain through recruiting new participants can appear in many forms in a pyramid scheme. Pyramid schemes are illegal, and those who enlist in them often lose a lot of money. 

Some companies or groups use a network of independent distributors to sell consumer goods through multi-level marketing (MLM) programs. It is possible that these programs, in which participants sell goods to customers and receive commissions from their own sales and the sales of people they recruit, are legal businesses. Nevertheless, not all multi-level marketing initiatives are trustworthy.

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What Is a Pyramid Scheme?

How Do They Work?

How to Identify Pyramid Schemes

Most Vulnerable Groups & Individuals

How to Protect Yourself

How Do You Get Out of a Pyramid Scheme?

FAQs About Pyramid Schemes


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