Pyramid or gifting circle
Pyramid scams generate profits by enticing investors to recruit others to invest in order to recover your investment, thereby creating a pyramid.
Means of contact
This scam is similar to Ponzi scams, but this new version is also referred to as “gifting circle” where you buy in, then need to find more people to invest so you can recoup your money. In some cases, a product is offered as part of the investment, but it’s of little-to-no value.
Promises of high returns on your investments.
What to look for
- Requests to refer a friend as part of the invstment
- Avoids answering questions about the investment
- High pressure, time-limited tactics