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BBB Tip: Avoiding pyramid schemes

Better Business Bureau

Many of our social media news feeds get bogged down with work-from-home opportunities that may ask the simple question, “Looking to Make Some Extra Money?”

But, the Better Business Bureau warns be careful because the products may be good, and you may want to support your friend, but not all opportunities are created equal, and some might just be scams designed to steal your money.

BBB regional director Sydney Waters says multi-level marketing is a legitimate system of retailing where consumer products are sold by independent salespeople, but pyramid schemes are different.

"A multi-level marketing company is like being part of a family. In contrast, pyramid schemes focus on making quick profits that are earned by selling the right to recruit others. The entire purpose of the scheme is to get your money upfront. There is no real product to be sold, so it’s a scam."

Waters says go to BBB's Scam Tracker to see if there have been any complaints or scam reports about the business and read about the signs of common employment scams.

If you believe you’ve been a victim of a pyramid scheme, you can submit a complaint at BBB.org/complaints, and the Federal Trade Commission at ftc.gov.

As a news producer and news anchor on All Things Considered, Brad provides the listeners with a recap of the day's top local and state news as well as breaking news at any given time. Contact WSIU Radio at 618-453-6101 or email wsiunews@wsiu.org
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