What are pyramid schemes?
Pyramid Schemes are a common type of credit fraud that happens all the time. What initially happens, is a business owner that looks trustworthy promises an easy money-making service to a consumer if he or she makes a down payment. The consumer, who is now the victim, now has to convince other people to join the scam. When other victims are induced into the scam, the money they pay to the service goes to the people who were previously tricked. The person who gains the most money is the person who began the pyramid scheme (also known as the "pharaoh"), as he gets a cut from every new person who joins. The only people who make a significant amount of money from this is the pharaoh, or the other people who are near the top of the pyramid. New victims near the bottom of the pyramid, who have not had a chance to recruit anyone, actually end up with a deficit.
If you need more information about pyramid schemes after reading all this site has to offer, visit this website: http://www.investopedia.com/articles/04/042104.asp
If you need more information about pyramid schemes after reading all this site has to offer, visit this website: http://www.investopedia.com/articles/04/042104.asp