pyramid scheme

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Related to Pyramid schemes: Amway, Multi Level Marketing

pyramid scheme

n.
A fraudulent moneymaking scheme in which early participants are paid out of money received from later recruits, with the final recruits putting money in and getting nothing back.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.pyramid scheme - a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in
scheme, strategy - an elaborate and systematic plan of action
References in periodicals archive ?
Global Banking News-March 5, 2018--South Africa warns consumers against ponzi and pyramid schemes
io/2017/11/09/pyramid-scheme-mmm-nigeria/) favoured by pyramid schemes , including the infamous MMM pyramid scheme in Nigeria.
Behind these groups is a looming challenge for the ruling Communist Party: A proliferation of pyramid schemes that have attracted enormous followings and huge sums of money, exploiting " and exacerbating " widespread anxiety over a slowing economy.
Thousands of Turkish online entrepreneurs were caught in pyramid schemes in the past, sustaining big losses in investment.
Lt Col Bin Hammad also warned against pyramid schemes.
PARLIAMENT on Thursday unanimously approved an amendment to the penal code, criminalising the organising of, and participation in, pyramid schemes.
The Islamic Fiqh Academy has issued a fatwa declaring pyramid schemes un-Islamic based on several reasons, including that they are a form of usury because they do not involve the selling of real products, or products that do not match the size of the huge commissions.
The Industry and Commerce Ministry's Consumer Protection Hotline (17007003) received dozens of complaints about pyramid schemes and network marketing in the first two months of this year alone, up from zero in 2014, which sparked a ministerial order banning both business models.
In addition, the illegal pyramid schemes impact legitimate direct selling and multi-level marketing businesses, which offer earning opportunities to uplift the lives of individuals.
Pyramid schemes involve people being asked for money without any goods or services changing hands.
Unfortunately, we have seen an increase in these pyramid schemes in the past year.
Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme.