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FRAUD PROTECTION AGENCIES
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INFORMATION ON PYRAMID SCHEMES & MULTI-LEVEL MARKETING (MLM)
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Pyramid schemes represent an all-too-common type of fraud which is only
rarely prosecuted. Pyramid schemes are frequently disguised as
multi-level marketing, a.k.a. network marketing, in which commissions are
paid based upon the number of members a sponsor recruits. While not all
companies engaged in multi-level marketing are scams, those that
emphasize recruiting over product sales or which pay commissions based
upon a large or unlimited number of recruitment levels most certainly
are. Chain letters are perhaps the most familiar form of pyramid scheme.
If you are an authority on pyramid schemes and would like to
write an article to appear on this page, please email us using the
Contact Us link near the top of the page.
Follow links to the right to learn more about pyramid schemes, multi-level marketing (MLM) and asset protection.
At the left margin, Related Links address topics of interest
pertaining to security and consumer protection. View the
Security & Consumer Protection SiteMap
for a complete list of security and consumer protection topics.
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