Pyramid schemes are illegal. They promise big profits based primarily on recruiting others to join a shady program, rather than a program that involves a real investment or sale of goods, according to the Federal Trade Commission.
For example, by the time one company, Fortune Hi-Tech Marketing, was deemed a pyramid scheme and banned in 2014, it had attracted over 350,000 consumers, according to the FTC. More than 98 percent lost more money than they made. If you get lured into a pyramid scheme and have invested money you can’t afford to lose, you’re almost guaranteed to go broke.
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