There's nothing new about pyramid schemes, but in difficult economic times, they may be a bigger threat than ever. The rise of pyramid schemes has made many consumers wary of participating in legitimate, often home-based or part-time, businesses. So how can you know if you are considering a legitimate business opportunity or some kind of a fraudulent scam?
What is a Pyramid Scheme?
Pyramid Schemes come in many disguises, but they all have one thing in common: sooner or later, they're going to collapse, and you're going to lose. Also on this page, information about similar scams, including Ponzi Schemes and Gifting Clubs.What about Multi-Level Marketing Plans?
Some people confuse certain legitimate types of home businesses with scams.Pyramids vs. MLM's
A user-friendly chart that spells out the differences between Pyramid Schemes and MLM's.Scam-Spotting Checklist
A useful tool for consumers who are considering a business opportunity and think there's a chance it could be a scam.Places to Learn More
More resources for understanding pyramid schemes and how to avoid them.Report a Pyramid Scheme Have you been approached to join or lost money to a pyramid scheme? Help us fight scams by filing a report at NCL's Fraud Center's online fraud complaint form.How Vulnerable Are We? (pdf)
NCL recently surveyed 1,000 adult Americans to find out just how vulnerable to pyramid schemes we are. The results are startling! Read our press release or survey findings.