Multi-level Marketing Pyramid Schemes At 5-year High | Know How To Avoid Them

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Pyramid scheme news: In 2023, India witnessed the launch of over 400 new multi-level marketing pyramid schemes, marking a five-year high, Economic Times reported citing Strategy India, a consultancy specialising in policy, compliance, and direct selling, and an associate member of the Indian Direct Selling Association (IDSA). Prominent among the scam alerts issued by Strategy India are names like Mission Green India, Jivan Daan, Dhan Vriddhi, and Capcha Pay.
The consultancy estimates that over 4,000 such schemes are currently active. These entities, which are often elusive with no functional websites or contact addresses, operate on a money-circulation model, paying existing investors with funds from new recruits rather than from actual profits. This practice often exploits gaps in consumer protection laws, with such schemes typically targeting low-income groups with promises of high returns in short periods. The schemes collapse when new investments cease, resulting in the promoters disappearing with the invested funds.
Here are a few ways to safeguard yourself from Pyramid schemes and Ponzi scams:

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