They may be getting smarter at your expense! Years ago, a pyramid scheme called the "circle of gold" made a lot of people a lot of money, but for others they ended up losing money. Now, pyramid schemes are making a comeback, but beware...the stakes are getting higher.
Take a look at this latest pyramid scheme. It's hitting our area and Call for Action wants to make sure it doesn't hit you where it hurts-in the wallet.
John Palangio, Director of Consumer Protection, RI Attorney Generals Office
"It's obvious they're trying to make money on the list and using the pyramid scheme as an excuse to buy a list."
Typically pyramid schemes ask you to send a dollar to each person on your list, usually six names...this time, these guys are banking on the hopes you're greedy. In fact the letter asks you to order even more names from a mailing list company to make you even richer.
"Now they suggest you buy the list of 200 names at $127.
And here's something new they're trying to make their scheme seem less...shall we say...less seedy.
"The new twist to this is, by law they're not allowed to do this unless they put on the letter, "please put me on your mailing list."
This allows you to mail the letters legally, skirting around any postal laws.
"That takes it out of the pyramid scheme and makes it more of a business proposition."
While it may be tempting to enter into a pyramid scheme, if you get into it towards the end, chances are you will end up losing money. You're really better off just throwing it away. If you know about a scam or have been ripped off, contact our call for action center Monday thru Thursday from 11 until 1. 228-1850.