Saturday, April 1, 2023

Stats: London misplaced £1.2 million to pyramid scheme scams in 2022

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New figures present London residents misplaced essentially the most to pyramid scheme scams final yr, with over a whopping £1.2 million (£1,292,540.74) misplaced per 100,000 individuals. That is 13 instances greater than neighbour county Essex, which misplaced £92,941 per 100,000 residents. 

Regardless of dropping essentially the most to pyramid scheme scams, London had the bottom report fee. Solely 8.03 reviews had been filed per 100,000 individuals. That is nearly 4 instances fewer reviews than the Welsh area of Gwent, which confirmed a median of 28.36 reviews per 100,000 of the inhabitants. 

Wales additionally noticed the fewest general reviews, at simply 2 reviews per 100k of the inhabitants. 


What’s a pyramid scheme?

In response to Investopedia, a pyramid scheme is a ‘fraudulent and unsustainable funding pitch that depends on promising unrealistic returns from imaginary investments’. It’s referred to as a pyramid scheme because of the completely different ranges inside the firm, with the cash trickling down the pyramid, benefiting these on the ‘high’ greater than these on the ‘backside’

For instance, early buyers within the firm will receives a commission huge returns, which results in them recommending the scheme to others. Returns are paid by new cash flowing in from new recruits, who might wrestle to recruit others and generate profits.

Pyramid schemes might or might not contain the sale of merchandise. In all pyramid schemes, nonetheless, the sale of a product is way much less vital than recruiting new buyers.

areas that misplaced essentially the most in 2022

pyramid scheme scams  

Areas that misplaced the least in 2022


Avoiding pyramid scams

  • Does it appear too good to be true? It in all probability is! If somebody is providing you big quantities of cash each month, or says you could possibly earn 1000’s alongside your day job, it might be price reconsidering getting concerned.
  • If there are big upfront prices, it might be a rip-off. Bear in mind, you shouldn’t need to pay to earn cash! Many pyramid schemes will ask you to pay on your merchandise to then promote them at the next value. On common, solely 10% of individuals revenue from these schemes. 
  • The merchandise offered are overpriced and low high quality. If that is so, it might be a entrance for a rip-off to make the enterprise appear extra respectable. The merchandise will even be more durable to promote, that means you might misplaced out on cash.
  • Should you assume you’ve got been scammed, contact Motion Fraud or your native police authority. 


Have you ever been the sufferer of a pyramid scheme rip-off? We need to hear from you! Go away a remark under or electronic mail


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