Wednesday, 25 April 2007

Beware of the Pyramid Scheme

For anyone who has been the unfortunate victim of a pyramid scheme, the trouble, amount of money and pain pyramid schemes can cause is no joke. Pyramid schemes are commonly marketing ploys that are aimed at the elderly or other unwitting consumers. Pyramid schemes often offer huge monetary payouts for a seemingly small buy in. Unfortunately, that huge payout that is often promised with a 100 percent guarantee does not ever happen.

At present, pyramid schemes are being targeted toward individuals in third world countries with little money to spare, but a great deal of hope that their lives could change for the better. Pyramid schemes cost the public upwards of millions of dollars each year. They capitalize on legal loopholes and play on psychological weaknesses in order to convince people to hand over their hard earned money. There are a number of organizations that exist simply to put an end to pyramid schemes. One such organization is the pyramid scheme alert group. This group runs a website and posts valuable information that warns people about the risks and dangers of pyramid schemes, and explains how pyramid schemes work and why they are impossible to
prevail over.

The lesson to be learned from pyramid schemes is that not every business is a legitimate one. With the rise in popularity of the Internet, it is important for consumers to keep a watchful eye on where they are putting their money and how trustworthy the people benefiting from their investments truly are.

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