Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Recession Pyramid Schemes Scam Warning

ConsumerWatch / Scams Jun 06, 2009 - 01:49 AM GMT

By: Consumer_Direct

ConsumerWatch

Government advice service Consumer Direct is urging people to avoid falling victim to pyramid schemes which are costing UK consumers an estimated £420 million a year.


Pyramid schemes - often advertised through mailings, the internet, recruitment meetings or through friends and relatives - are clubs which promise, once you've paid a joining fee, that you can earn large amounts of money by recruiting new members.  The schemes always collapse for want of new members, leaving many people significantly out of pocket.

An estimated 480,000 adults fall victim to pyramid schemes every year, with each person losing an average of £930. Often participants recruit family and friends to the scam, resulting in emotional as well as financial harm.

New laws which came into force in May 2008 specifically prohibit people from establishing, operating or promoting pyramid schemes. Breach of the law is an offence punishable by up to two years' imprisonment and/or an unlimited fine.

Last month, the Office of Fair Trading announced it had launched a criminal investigation into a suspected unlawful pyramid scheme in the South West of England which led to the police making a number of arrests.

Michele Shambrook, Operations Manager for Consumer Direct, said: 'In the current climate, the offer of big rewards in return for a modest outlay might seem tempting but don't get drawn in. You may lose your money, risk alienating friends and family, and could be getting involved in an illegal activity.'

Information on avoiding pyramid schemes and other scams is available on the Consumer Direct website at www.consumerdirect.gov.uk People needing individual advice can call the helpline on 08454 04 05 06.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in