What are pyramid schemes?
Pyramid schemes are investment frauds that have two common elements: (a) new people pay money to other investors to enter the scheme, and (b) people in the scheme make their return on their investment by convincing other people to enter the scheme. Pyramid schemes are an old type of confidence frauds. They have been around for centuries, but still appear from time to time and still catch significant numbers of people and they lose large amounts of money.
