How are Pyramid Schemes Disguised?
Pyramid schemes may be disguised as games, chain letters, buying clubs, gifting clubs, motivational companies, mail order operations, or investment organizations. Some pyramid schemes also call themselves multilevel marketing operations, but not all multilevel marketing companies are pyramids. The sale of legitimate products is what distinguishes multilevel operations from pyramids. If you are told you will earn commissions for recruiting new members rather than for selling something of value, the organization is probably an illegal pyramid.
