<img height="1" width="1" src="https://www.facebook.com/tr?id=769125799912420&amp;ev=PageView &amp;noscript=1">
About Our People Legal Stuff

Warning: be wary of pyramid schemes on social media


(WOLF) -- Pyramid and Ponzi schemes attract people by offering them easy, fast cash just for recruiting other people to join or invest into the program -- and now they’re getting a reboot on social media.

Schemes called “money trees” or “blessing looms” have been popping up on sites like Facebook and Snapchat.

Friends and family members recruit others to pitch in a certain amount of cash.

Its all put into a pot on a mobile payment services like Venmo, PayPal, or CashApp.

Then, the person at the top gets to cash out.

But experts say don’t be so quick to fall for so-called “easy” money.

“If the emphasis is on recruiting, again that’s not going to be a true investment. The recruiting emphasis really shows that it falls into that pyramid scheme, you know, try to get more people involved to make more money. But again a true investment would come through a bank, a stock broker, or a trader. Someone who can be trusted.”

Read Comments
Facebook Twitter Instagram Pinterest Linked In List Menu Enlarge Gallery Info Menu Close Angle Down Angle Up Angle Left Angle Right Grid Grid Play Align Left Search Youtube Mail Mail Angle Down Bookmark