(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.”