Fraud & Scams

Pyramid Scheme

Definition

What is Pyramid Scheme?

A scheme that rewards recruitment more than genuine product sales or investment activity.

Example in practice

Participants earn mainly by bringing in new members who pay entry fees.

Keep learning

A fraud that pays earlier participants using money from newer participants rather than genuine investment profits.

Manipulating an asset upward through misleading promotion before selling into the inflated demand.

A digital-asset fraud in which insiders remove liquidity or abandon a project after attracting investor funds.

A person or firm that executes securities transactions for clients.

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