Financial pyramid - what it is, its signs. What is a pyramid scheme - signs, principle and essence of work

The history of the concept of "financial pyramid" dates back to the time when there was distrust of banks. Having studied the banking sector, it became clear how money is made out of thin air. To do this, it was only necessary to create a constant cash flow in the system, which would then redistribute funds between participants, giving everyone the opportunity to earn money. Owners have the right to use other people's money, and contributors benefit from profits.

Everything seems to be beautiful and simple - partly it is. We conducted a large-scale research and tried to answer frequently asked questions. Therefore, further it makes sense to talk about what are the signs of a financial pyramid, what it is, its types and how it works.

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What is a pyramid scheme

Is an organization whose profit is formed by the constant flow of new funds in the absence of any real activity or product. In short, this is a fraudulent organization that offers to place investments under "Draconian" percentage of profit, guaranteeing quick earnings. The company does not produce a product or service, but provides profit to early participants at the expense of late ones. Thus, there is a banal transfer of money from one hand to another. We recommend watching the excellent documentarywhich considers this definition.

However, under such conditions it is impossible to work forever, which provokes a sad outcome for everyone - the termination of payments. When the outflow of funds exceeds the inflow, the organizers of the financial pyramids close the project. Therefore, such schemes are considered to be fraudulent, despite the fact that at times such "companies" receive incredibly large sums. The most famous and once reliable investment company in Russia in the 90s, which in fact turned out to be a fraudulent one, is the financial pyramid "MMM" by Sergey Mavrodi. The film just tells about this, but we will consider this in detail further.

The history of pyramid schemes

"Tulip fever"

The first, and also the largest financial pyramid in history, rightfully deserves its title - the Dutch tulip fever, which spread in the 17th century. The excitement was overwhelming. “Tulip exchanges” were even created, where fortunes were made on speculation. One onion of a unique variety could easily be exchanged for an expensive house. The market collapsed in 1637, but even to our time, nothing has recreated the excitement of this magnitude on an unsupported resource.

Mississippi Company

Tulip fever was not really a pyramid scheme, because there was no need to attract new money. The first financial pyramid was created by John Law, forming an open joint-stock company called the Mississippi Company. The firm attracted new contributions from shareholders, which were to be used to colonize French territories on the Mississippi River. At the same time, the shares were not distributed among a narrow circle of people, but everyone could purchase them. The success was incredible and the stock increased its value many times over. Over time, the stock price collapsed, making it impossible for millions of depositors to pay back.

The definition itself, as a term, was first used by the British in the 1970s to denote a scam. However, history shows that the first modern financial pyramid was created by Charles Ponzi in the USA. Ponzi recreated the first single-tier fraudulent scheme based on attracting new deposits. Charles founded a company that offered to buy coupons in exchange for a promissory note that guaranteed 50% of the net profit after 45 days. Over time, it turned out that there were only 27 thousand coupons on hand, although 160 million were to be circulated. The scam was exposed, and the depositors returned only 37%. In total, Charles raised $ 50 million.

"MMM"

The incredible boom of pyramid schemes in Russia occurred during the massive privatization of the early 1990s. At the same time, the largest financial pyramid of the CIS region was created under the leadership of Sergei Mavrodi "MMM". The company was engaged in the issue of shares, which were offered for purchase to everyone. As a result, the organization was recognized as the largest scam, although it officially paid taxes. We will consider in more detail below.

The principle of the pyramid scheme

None monetary structure cannot function without a constant flow of money, so the principle of such work can be associated with pyramids. Indeed, in fact, if you withdraw all deposits from any bank, it will close. Why? - because the bank does not produce any product, but in defense of banks it is worth mentioning the provision of financial services... The principle of the pyramid scheme is based on an exceptional influx of new depositors. As soon as the inflow stops, the investment site is closed.

To understand how to build a logical chain of events to help understand how a pyramid scheme works, let's give an illustrative example:

• Let's say a legal company has opened "Naduvalovo" .
• The fund attracts investments, guaranteeing earnings of 1% daily.
• The first investors appear who are paid the declared yield.
• Investors like everything, so they express a desire to attract new partners, because "Naduvalovo" will give 10% of new deposits.
• The project pays this money too, so more and more people want to make money.
• "Naduvalovo" is developing, and the first investors are already receiving a net profit on personal deposits. All investors rejoice and sing songs of praise.
• There comes a point when the payout obligations become excessive or the organizers simply want to close the program.
• Payments are stopped.
• Investors understand that this is a fraudulent scheme, but alas, even the police are unlikely to find the creators "Naduvalova" .

In short, the whole process goes something like this. Almost everywhere they write that financial pyramids are unprofitable organizations. We agree with the title "scam" and that the majority are left with nothing either. But few talk about how huge numbers of people became millionaires by participating in such schemes. The Internet contains tons of them. You just need to know how to make money and understand the principle of work, although everyone accepts the choice to participate or not.

Signs of a pyramid scheme

One of the most frequently asked questions for sure "How to recognize this kind of company?" ... For this, a sign was made. So, the signs of a financial pyramid include:

The company's activities are based solely on words	The work of the company is supported exclusively by words or text on the site. No one will ever show what operations are carried out because they do not exist in nature.
No accounting reports	The income on the deposit is accrued according to the stated conditions. Another point is that a highly profitable project will never provide accounting statements about the activity.
The percentage is higher than the bank	Each sign is important, but this point is the most revealing. If an investment fund offers a guaranteed income in excess of the bank interest on deposits, it will most likely turn out to be a financial pyramid, of which there are many types.
No faces	Often the faces are not revealed. On the other hand, their presence does not guarantee the company's reliability in any way.
Documents in an offshore country	Most often, organizations are legal. This happens because documents like the Panamanian license are not difficult to forge (buy). Also, certificates are forged, which will claim that all money is protected and insured.
Barkers give guarantees	There is a large number of activists who are "pumping" the investment fund. At the same time, they often guarantee 100% result and no risks from such persons.
Fast payback period	The payback period of the deposit can be from a month to a year (more unlikely). This is many times greater than banking conditions deposition.
Minimum deposit	A minimum investment is required to participate.
Active PR campaign	There is massive advertising and people are walking in batches. It is also one of the most important signs.
Promises for the years ahead	Surely it is not known how long such enterprises live, although the average figure is 1-12 months, given the ten-year plans of the organizers.
Persistence of the organizers	The creators in every possible way encourage new depositors to make deposits using tricks and tricks. Early investors are also forced to go for reinvestment.
Passive income	The main sign is that you do not need to do anything, just give money and sit on the couch. Surely such conditions are inherent only in "pyramidos".

This is how the pyramid scheme functions, the signs of which can be identified with the naked eye.

Financial pyramid - essence and purpose

The main goal of the creators of such a scheme - to become richer due to the constant influx of new members. Whoever manages to get rich with them is a fine fellow and knows that the sphere implies not only losses, but also excellent profits. To understand how the pyramid schemes work, you need to understand their essence. Everything can be primitively depicted using the following scheme.

The creators are professionals in their field, so they know how to make an investment project, where people will take money. The investor will make a profit as long as the outflow does not exceed the inflow. As soon as it all comes down to this outcome, the financial pyramid collapses, and depositors understand that this is the end. In fact, it all boils down to the redistribution of income between platform participants. It is difficult to dissuade an experienced person from participating in this kind of investment, because he knows that such money cannot be pulled out of the bank or from the place of work.

Types of financial pyramids

Sibling

The simplest and most popular type is a single-tier investment fund. This is a standard Ponzi scheme. It is not necessary to invite new clients, because the creator pays with the participants with personal funds at the initial stage of work. After gaining popularity and creating the illusion of a reliable project, the cash register begins to fill with investors' money. In short, the principle of operation is based on the independent development of the platform by the administrator without stimulating the audience to develop.

Tiered

A type of highly profitable program similar in principle to the previous one, however, it provides for mandatory invitations. Without partners and additional funds, it will be impossible for funds to flow from late investors to early adopters and admins. Multilevel projects can include up to 15 structure levels, but fully completed levels will equal the number of people in the country.

Matrix

The matrix scheme provides for a type of marketing in which the investor undertakes to fill in his own matrix. The size of the matrix is \u200b\u200bdescribed by the terms of the company. The new participant gets to the very bottom of the matrix and gradually moves up, filling his own. In this case, the invitation of partners is not necessary, since the matrix can be filled in by higher and lower people. It is worth saying that such a situation is unlikely. It looks like this schematically.

The one-tier financial pyramid is the most tenacious, since only deposit obligations create a load on the cash desk. The average life of this species is approximately 4 months to several years.

The largest financial pyramids in world history

In the course of the development of technologies and human skills, the ability to obtain benefits progressed in parallel. On these grounds, marketing changed, which attracted more people and money, respectively. This provoked the development of a high-yield investment scheme and new types of financial pyramids appeared. Further, each type is considered separately point by point.

In 1981, the founder of Trans Continental Airlines Travel Services and a dozen others, Lou Perlman, became especially famous. The companies were listed only by documents and did not conduct any activity. Lu managed to sell shares of his project for 20 years in a row and even list shares on the stock exchange. Both individuals and financial institutions bought shares, and their share price grew.

The criminal scheme was later uncovered and Lou Perlman was sentenced to 25 years in prison. For all the time he managed to attract $ 300 million... It is interesting that it was this man who created the popular musical groups Backstreet Boys and NSync.

European Royal Club

In 1992, an organization called the European Royal Club was established by two partners Damara Bertges and Hans Spachtholz. The club had great financial influence and was perceived as the opposite of European banks. Members of the European Royal Club had the right to purchase a "letter", which was presented as a share of the company. The stock gave a return of CHF 200 at a price of 1400 monetary units... The fraudulent scheme was uncovered 2 years later. During this period of time, the amount of investment was $ 1 billion ... Damara was given 7 years in prison, and Hans 5.

Barnard Medoff's greatest pyramid

The largest financial pyramid of all time in the world was created by a man named Bernie Madoff. The activity of the scheme falls on the modern period. Bernard Madoff founded the Madoff Investment Securities investment fund, which was rightfully considered one of the most reliable and largest in the United States. The fund gave depositors from 12% to 13% of profit every year. For 15 years of its existence, it has been able to attract both private investment and capital of large financial companies... According to estimates, over the entire period, it was possible to attract more than 3 million people and capital in the amount $ 65 billion! The bubble burst in 2008, and Bernie received 150 years in prison.

Ingenious schemes

The name of the scheme is derived from the name of the creator from Pakistan with the beautiful name Syed Sibtul Hassan Shah. For some time Syed Shah lived in the city of Dubai, after which he returned home - the city of Wazirabad. The guy actively began to tell his neighbors about his incredible competence in managing money on the stock exchange.

Only 10 people believed Shah, who gave the money under guarantees of doubling it in a week. The guy fulfilled his obligations and after 1.5 years he managed to collect order $ 1 billion with over 300 thousand investors. The Shah's activities ceased and as a result he was arrested under the law.

Also, one cannot fail to mention one more interesting historical moment. In 1999, a Chinese businessman named Wang Feng opened his own firm, which invited everyone to become its investors. The bottom line was an unusual business - buying and caring for "special" ants. The ants cost $ 1,500 and, according to legend, had healing properties. For 14 months of caring for ants, investors were entitled to accruals in the amount of 32% per year of the purchase amount.

Wang Feng became a very famous person, who was written about in newspapers and talked about on television. However, in practice, there was no use of ants. The scam collapsed upon reaching a total investment of $ 2 billion and Feng was sentenced to death.

Popular financial pyramids in Russia

"MMM"

The largest financial pyramid of Russia "MMM" by Sergey Mavrodi has already been mentioned several times. Sergey and two henchmen decided to organize an enterprise, the name of which consisted of the first letters of the names of the founders. The company offered to become a shareholder for everyone who would receive 1000% per annum. The popularity was immense, especially on television.

The firm had an enticing slogan: "Tomorrow is more expensive than today." The organizers managed to work for 5 years, attract about $ 2 billion with millions of contributors. In 2003, MMM was recognized as a fraudulent scheme, and the founders were taken into custody. However, Sergei said that the collapse of MMM was solely the state's fault. According to the law, the company was supposed to pay 11 billion rubles to the state in taxes, with 15 paid. However, the state turned everything upside down so that the founders were obliged to pay 50 billion.

"Vlastilina"

The well-known financial scam "Vlastilina", registered by Valentina Solovieva, gained considerable popularity in 1992. The company accepted deposits at interest and after the term of the deposit made it possible to buy a car or a house with a 50% discount.

However, 1995 was the last year for Vlastina. Valentina was arrested without the right to leave prison earlier than 7 years later. The collapsed network deprived 16,000 customers $ 2.6 million .

Selenga Russian House

The Selenga Russian House was founded in 1992. She was one of the first financial pyramids in the CIS. Sergey Gruzinin and Alexander Salomadin have opened more than 70 branches throughout the country, offering investors a return on investment in a network of supermarkets, transport and tourism enterprises. The scam collapsed in 1994, leaving 2.4 million contributors with nothing. 2.8 trillion non-denominated rubles .

Since 1992, the Hoper-Invest organization has been building a massive network of points for accepting money at interest. The fraudulent scheme developed a number of dubious companies and exported capital abroad from Russia, exchanging it for currency. The bubble burst in 1997, and the founders were given 8 years. Four million people were deceived in the amount of 3 trillion non-denominated rubles.

State pyramids

We wanted to dig as deep as possible, considering this scheme. From our research, it turned out that almost everything in our world works on the principle of a pyramid. Let's look at real examples.

Banks

A bank is a financial institution that accepts money from interested parties for safekeeping in exchange for their use. Banks have the main product, thanks to which these "pyramids" exist - credit. Without it, the existence of these structures would not have been possible, since the first main instrument is the deposit. Each depositor receives 7-12% per annum, so money is constantly leaving the "cash desk". Only increased rate on a loan gives stability to large banks. But history knows a lot of examples when banks burst like a bubble. Do you know why? - because people took deposits en masse. The cashier is empty, the bank is closed, does it look like anything?)

Everyone was young and will eventually become old. The state takes care of the elderly by providing them with a state pension. However, not many people know where this money comes from. While we work, we pay tax to the state on each of our salaries. Thus, the young provide the old ... It is impossible to say that we pay taxes, and then we will receive them in old age. The world of finance is changing rapidly, currencies rise and fall - too much is changing. Therefore, while young people give away part of their income, the state pays a pension to the elderly. As soon as this stops, there will be no pension. There is a banal transfer of money.

Dollar

And of course, it is impossible not to mention the great and mighty US dollar. After World War II, the US authorities carried out a competent policy that made the American country the greatest and richest on the planet. But America doesn't have that much gold and foreign exchange reserves how many dollars were issued around the world. According to statistics, only 4% of the total mass of currency is backed by gold. Conclusion: the dollar is a global financial pyramid, which is supported exclusively by bogus interest, because the US national debt is $ 21 trillion

Famous financial pyramids on the Internet

Fraudulent schemes are recognized to be called. These schemes have all the features of financial pyramids, so below we will consider the most famous ones.

The network pyramid of Mercury appeared in early 2014. The project was picked up and developed. Investors were offered 1% profit every day for a year. The money was placed without guarantees on a voluntary basis, but there were many who wanted to become an investor. The hype was closed in the same year.

Another well-known financial pyramid of our time is Webtransfer. The investment conditions were pleasant and gave the participants 0.5-3% profit daily. The company was engaged in micro-credit, where anyone could become a lender or borrower. The popularity was extremely high and many were able to become millionaires, but the bubble still burst.

Questra world

Questra Worrld, Atlantic Global Asset Management, AGAM as soon as they did not call this hype. Has become super popular throughout Europe with huge accumulated liquidity. It was suggested to buy investment portfolios, giving from 17% to 26% of profit on a monthly basis. Thousands were able to get fabulously rich and earn tens of thousands of dollars, since the hype was decent, but it still closed.

MVK - Millionaires in sneakers became a popular platform in 2016. The fund was managed by Vladimir Romanov and gave investors a floating interest rate (average 1%). People invested fabulous funds, even sold property. Many have become rich, but most have lost.

The Bitcoin investment pyramid scheme Airbitclub has become popular amid the growth of Bitcoin. For marketing, participants received 40% per annum. It was popular on the Internet, but few people made money.

Cashbury

The largest investment project in the CIS in 2017-2018 is Cashbury. Specializes in microcredit. Hundreds of offices were opened all over Russia, large-scale leaderships and massive advertising were held. HYIP gave up to 1% daily for 400 days. Thousands of people have enriched themselves.

The legendary hype DDfutures, whose admin decided to wipe the nose of the entire industry, giving 2.1% of net profit per day from the end of 2016 to 2018. The fund became popular on the MMGP forum, was able to give over 1100% of net profit and turn over more than $ 1 million all the time.

Responsibility for creating pyramid schemes

All states are fighting financial pyramids, because they directly affect the welfare of the country. The founders literally deprive the country of money, since naturally no one pays taxes. All structures that have signs of a financial pyramid are prohibited on the territory of Russia under Article 172.2 of the Criminal Code of the Russian Federation and bear criminal responsibility.

By law, for creating fraudulent schemes in China and United United Arab Emirates a severe punishment is envisaged - the death penalty. If a country does not have a separate article on this matter, fraud can be considered illegal business.

Difference between network marketing and pyramid schemes

Often people cannot figure out how network marketing differs from a pyramid scheme. Many people think that they are one and the same - this is an extremely misconception. Beginners endow both definitions with a similar meaning, since the principle is quite similar, and money is made in a similar way. Conclusion - everything is a scam. Further in the table are the main differences between network business and ponzi projects.

Modern operating financial pyramids

Now you know what a pyramid scheme is and what are its signs. Almost all sources make an unambiguous conclusion - it is impossible to make money on investment projects of this kind. It may sound a little rude, but these people are absolutely not competent in the topic. This article contains a lot of examples from history where people lost a lot of money, but experienced participants made a huge profit. Without exaggeration, many have become millionaires without breaking the law. Participation is not illegal.

This type of earnings is the main one for us, because the sphere has been studied up and down. If you follow all the rules, you can make money and even very stable, read at least the reviews of the MMGP forum participants. We do not call on anyone to invest in banks or such projects - everyone makes an independent decision. If the topic is really interesting to you, you can see who are paying at the moment. It is constantly updated, and the blog is monitored in real time. Investing in cryptocurrency, knowledge or keeping money under the pillow is everyone's choice, but personally we are inspired by the following thought from a wise successful person:

"Either you will manage your money, or their absence will manage you." Dave Ramsey

MAVRO, originally called MMM-dollars. The course for the acquisition and sale of this currency changed twice and was personally appointed by Sergei Mavrodi. Participants were offered the opportunity to receive income from buying MAVRO at a lower rate and selling it at a higher rate. Several types of MAVRO were envisaged, depending on the level of profitability and on the terms of purchase. However, when MMM began to curtail its activities, there was only one type of MAVRO with a yield of 40% per month.

The peculiarity of the functioning of MMM-2011 is that it does not have a person, a center and a single current account. The process of buying and selling MAVRO occurs as a process of buying and selling between individual participants or groups of participants. The methods of transferring money are very different: cash, postal and banking, payment systems, etc. Each new participant of MMM registers in the primary cell - ten and makes its contribution to the ten's manager. In return, the participant receives a certain amount of MAVRO at the exchange rate at the time of purchase. In the future, he can track the growth of his contribution by changing the course of the MAVRO. When selling their MAVRO system, money is paid to the participant from the funds of the cell.

Actually cash the participant does not transfer to anyone. He simply opens his bank account, deposits the amount of the deposit on it and undertakes to transfer them at the request of the foreman or centurion. For refusal to transfer money, the participant is excluded from MMM without the right to be restored in the system. Instead, on the official website of MMM in personal account the participant is credited with the MAVRO amount of the agreed type at the rate. When selling their MAVROs, money is transferred by another participant or participants by order of the foreman or centurion. This feature of MMM's work makes it problematic to prove the fact of fraud, and even more so - the fact of theft.

Above the foremen are centurions, who manage the activities of several cells. In the event that a dozen funds are not enough to pay a deposit to a participant, funds from other dozens are used, and if necessary, from hundreds of cells, etc. The centurions, managing foremen, in turn, are led by the thousand's managers. They are run by temniks (ten-thousanders), and they are by an official manager. Mavrodi himself is an advisor to the MMM. All positions are elective and correspond to levels structural organization MMM, in no way corresponding to the real number of the cell.

Leaders of all ranks and personally Mavrodi openly warn all participants and those who are simply interested that MMM is really financial, they do not guarantee income and even return on funds already invested, they warn of the constant risk of losing money. The rules in MMM are rather arbitrary and change quite often.

From a legal point of view, MMM is neither a legal entity nor a public organization and exists as an unregistered network. There is no opportunity to independently verify the participants in the pyramid, but according to Mavrodi himself, it exceeds a million people.

Hello, dear readers of the financial magazine "site"! Today we will tell you what a financial pyramid is, what signs financial pyramids have and how to recognize them at an early stage.

So, from this article you will learn:

• What is a pyramid scheme and how does it work;
• The history of the pyramids;
• What types of financial pyramids exist and how to recognize them at an early stage;
• How is network marketing different from a pyramid scheme;
• and a lot of other useful information.

The article will be useful to everyone who is interested in financial issues, as well as those who want not to lose money at such events. Don't waste your time! Read the article right now.

About financial pyramids, what they are, what types they are, the purpose of creating pyramids - read on

Financial Pyramide (from an economic point of view) - this is a scheme specially created to generate income by attracting more and more new members.

In other words, those who entered the pyramid provide income to those who entered it earlier.

There are other schemeswhen all funds are concentrated in only one person, who is the organizer of the pyramid.

In Russia, at the mention of a financial pyramid, most immediately come to mind Mmm , which was actively promoted in the early nineties. When the pyramid collapsed, thousands of people suffered.

Most pyramids hide behind a mask in their activities investment, and charitable funds, companiesproducing bogus goods give depositors a promise to take money out of nowhere.

There are another type of financial pyramid ... It appears in some cases and as a result of running a regular business. This happens if the organizer of the activity has incorrectly calculated the profitability. As a result, instead of profit, losses are obtained, there is nothing to pay with creditors and investors.

To keep the business afloat, and those to whom its owner owes money, do not sue, new loans are taken. The money received is used to pay off previously assumed obligations. It is not entirely correct to consider such a scheme as a fraud; rather, it refers to illegal business.

Often scammers cover up the pyramid by doing business. In this case, there may be a small payment, but it is always less than the main contributions to the pyramid itself. Most of the imaginary income comes from investor contributions.

2. The history of the emergence of financial pyramids 📚

The term "Financial pyramids" fraudulent schemes began to be called in England in the seventies. However, they appeared much earlier. The first pyramid (Organization of the Indies Joint Stock Company) was created by John Law. to raise money for the development of the Mississippi.

For the first time a structure like modern single-level pyramids appeared in 1919... An American became the creator of the project Charles Ponzi... It is by his name that such schemes are called today.

The fraud was tied up on coupons, which, as it turned out, were not subject to sale for cash. The only thing that could be done with them was exchange... Nevertheless, the first participants in the pyramid received income, naturally, due to the influx of new investors.

In Russia, the peak of pyramid activity fell on the period of transition to market economy... It was then that a huge scandal with the MMM project thundered.

Today, pyramid schemes are prohibited in many countries. In the United Arab Emirates, as well as in China, for the creation of a financial pyramid can be awarded death penalty... In Russia, such actions are threatened criminal liability.

The main reasons for the creation of financial pyramids

3.7 reasons for the emergence of financial pyramids 📎

Financial pyramids begin to form at the moment when a suitable political and economic situation.

The most important prerequisites for the emergence of such fraudulent schemes are:

1. low inflation;
2. the state should operate the principles of a market economy;
3. there should be free circulation of securities in the country;
4. legislative regulation of the creation and operation of such structures is poorly developed, there are no corresponding norms;
5. an increase in the income level of the majority of the population;
6. citizens have free funds that they are ready to invest in various financial structures;
7. low level financial literacy population, as well as poor information support.

All these prerequisites are pushing enterprising people to create pyramid schemes that violate the laws of the country.

4. The goals of creating financial pyramids 📑

Financial pyramids are created with the aim of enriching their organizers and this happens due to the influx of new investors. Sometimes those who entered this scheme at the early stages of the formation of the pyramid, and then withdrew their funds on time, also receive profit.

Contributions (deposits) to the financial pyramid never invested anywhere ... They are sent to pay remuneration to the upper levels of participants.

In other words, those who have already entered the pyramid receive their money by attracting new and new members. Thus, it is beneficial for all contributors to attract as many people as possible to the scheme. Only in this case will they receive any profit.

Therefore, the pyramids are gaining popularity so quickly and have a high degree of distribution.

Sometimes, in order to cover up a financial pyramid, a certain product is created. However, this does not change the essence of the scheme. The product does not bear profit, it is formed exclusively due to contributions of new members pyramids.

Despite the fact that the incoming funds are distributed according to various schemes, the main principle of any pyramid is the constant attraction of new participants in as many as possible.

Sooner or later, the influx of new investors dries up and at this moment there is nothing to make payments to the participants of the pyramid. The result is always the same - the pyramid collapses .

When entering the pyramid, participants should be aware that not everyone will get their money back (not to mention any income). Those who will be the last to enter the pyramid will probably lose all their investments.

Usually the owners of a fraudulent scheme, when they see that the influx of depositors has decreased, suspend payments... After that, they calmly collect the remains of the accumulated funds and disappear in an unknown direction.

That is why you should not expect that you will be able to get rich by making dubious investments. It is difficult to determine at what stage the financial pyramid is and when it will collapse. That is, the risk of losing funds invested in the pyramid is always very high.

It is best to consider a reliable and profitable investment. For example, they can bring much more income than unknown and high-risk financial instruments.

How does a pyramid scheme work - the main stages of creation

5. The principle of the financial pyramid - 3 stages of the classic pyramid 📝

The idea of \u200b\u200bpyramid schemes would be incomplete if you do not study how they work. The easiest way to understand such a scheme is by looking at the stages of the pyramid using numerical values.

Stage 1. Create a pyramid (first level)

The organizer convinces 4 (four) participants to join the pyramid. At the same time, he takes from them 100$ as an entry fee and promises to pay for each new member 25$ .

Organizer's income at the first stage was 100 x 4 \u003d 400$

Costs are $ 0

Stage 2. Creation of the second level of the pyramid

Participants of the first level attract 4 (four) depositors to the pyramid on the same terms as they came themselves. For each attracted contributor, first-level participants receive 25$ .

Income at the second stage: 4 x 4 x 100 \u003d $ 1,600

Total income since creation: 400 + 1,600 \u003d 2 000$

Costs: 4 x 4 x 25 \u003d $ 400

Organizer's net profit: 2,000 - 400 \u003d 1,600 $

Stage 3. Creation of the third level

All participants of the third level enter 4 new contributors into the pyramid (the conditions are the same).

Income at the third stage: 16 x 4 x 100 \u003d 6 400 $

Total income since creation: 6,400 + 2,000 \u003d 8 400$

Costs: 16 x 4 x 25 \u003d $ 2,000

Organizer's net profit: 8,400 - 2,000 \u003d $ 6,400

This fundraising scheme can take a very long time. It is beneficial for the organizers that as many participants as possible enter the pyramid, because their profit depends on this.

However, the faster the scheme develops in the pyramid, the faster it collapse ... This is due to the fact that number of potential depositors always of course.

When the influx of new participants, and hence the money, dries up, the organizers of the pyramid disappear with the money collected at the moment.

Payments to depositors stop and as a result, those who entered the pyramid at the last stage are left with nothing.

However, in modern society, such schemes classical financial pyramid are rare. Thanks to the development of the Internet, more and more new options for deception appear. Therefore, in order not to become victims of fraudsters, you should carefully study the signs of financial pyramids.

The main signs of a financial pyramid

6. 20 signs how to identify a financial pyramid 📊

Often, newcomers to investment are convinced that they are investing in projects that are distinguished by development prospects, stability and high returns. However, a detailed analysis of investments turns out that they are investing their money into an ordinary financial pyramid.

As a result, most novice investors lose very quickly own funds ... In order not to become a victim and not get into such a situation, it is important to learn recognize fraudulent schemes... It is impossible to do this without knowing the main features of financial pyramids.

Today, due to the global development of the Internet, pyramid schemes are widespread. Online every day are createdand crumblinga huge number of pyramids. At the same time, there are so-called offline pyramids that are not connected with the Internet.

Part of the pyramids is created by restarting previous projects. In this case, the scheme burns out, the accounts are reset, and the process starts over. There are often situations when the owners of one already collapsed pyramid create a new one, just changing its name.

Many creators of modern pyramids came from the famous MMM-2011 scheme. These projects have a huge number of names. But it is worth remembering that hYIPs, and at matrices, and many other schemes there are signs of pyramid schemes.

Every day, in mail, social networks, skype, people find a huge number of proposals to join various highly profitable projects. You can also meet calls to participate in the pyramids on sites with job offers, as well as projects dedicated to making money online.

We wrote about it in our last article, where we considered only reliable and proven ways to make money online.

It cannot be argued that everyone who enters the pyramid will necessarily lose their capital, since those who enter the scheme earlier than others manage to earn decent money.

However do not forget that the percentage of getting into their number is very small, because the share of those who made a profit in the total number of participants is very small. Therefore, in order to recognize in advance whether a project is a financial pyramid, it is important to know their distinctive features. About them and speech will be below.

Feature 1. High level of promised income

Experienced investors know that investments under 25-35% annuals can already be called quite risky. If such profitability is promised in a month, there are clear signs of a pyramid.

Sign 2. The condition for receiving income is attracting new members

This sign unambiguously indicates that the project is a financial pyramid. Sometimes companies hide behind the fact that they act like pyramid schemes.

However, do not forget about the essence of the action of such schemes: new participants are needed so that their contributions go to the income of old participants and to ensure profit for the organizers.

Symptom 3. The scheme of income payments is vague or too abstruse

In other words, the investor is promised huge returns that can be obtained by fulfilling certain conditions. Moreover, all the necessary conditions contain a huge number of points.

It is clear that in such cases there will definitely be a reason fail to pay funds, referring to the fact that one of the points of the agreement has not been fulfilled.

Feature 4. Guaranteed income

None of the investment methods can guarantee the investor income. Therefore, if advertising guarantees income, and even very high, this may indicate the presence of pyramid signs in the company's actions.

Feature 5. Income paid to depositors thanks to new members of the company

This feature follows from the scheme of the pyramid. Since there is no real profit, the only way to pay off income is to attract new investors.

Feature 6. Forcing to make periodic contributions or buy company goods

If, to participate in the investment, the company requires regular deposit money or purchase goods they do not need at high prices, then the organization does not receive profit from its activities. It is kept afloat only thanks to the infusions of the participants in the scheme.

Sign 7. The product looks like a fictional one or is sold at too much inflated price

This feature allows you to figure out whether the company is a pyramid scheme or simply operates within the framework of network marketing. In the latter case, real product at real prices.

We wrote in detail about the principle of operation and what it is in a separate article.

The pyramid sells something like a Cuban berry, which, after being harvested, is sent to Japan, where pomace is made from it, which is infused in Italy. The result is a tool that allows you to quickly lose weight and costs 399$ per 100 grams.

In practice, at best, they sell an infusion of ordinary field herbs. Such sales clearly indicate the presence of fraudulent schemes.

Sign 8. Continuous motivation

The creators of the pyramids constantly convince their investors that work is akin to slavery, every adequate person seeks to receive passive income, towards financial independence. The founders approvethat their company allows you to get rid of employers, for this it is enough to work in a friendly team and for its benefit. What it really is and how you can create it, you can read in our article.

Such motivation exerts the strongest psychological pressure on everyone who has at least small financial difficulties... Seeing in appeals the ideal way of earning money, people bring their funds to the company.

In practice, make money on pyramids fails almost anyone. Money can only be received by creators, as well as their immediate environment, which is usually located at the upper levels of the scheme. And then they will only work if they are not brought to justice.

Feature 9. Ads that do not contain specific information

Sign 10. Calls to rush to invest

Such slogans hint that only the first investors will be able to earn real money.

Before you invest your money, you need to carefully disassemble in all the details of investment and in no case rush into investments. We also recommend reading our material - "", where the main and proven investment methods are considered.

Symptom 11. Calls for action now

This symptom is very similar to the previous one. Slogans to join the project today, in a week and the like are aimed at psychological pressure... They put pressure on the subconscious, hinting that in the near future the tempting offer will end. It is better to stay away from such slogans.

Symptom 12. Information is contained only in video presentations

Most often different video messages, presentations, meeting records and seminarsshowing a huge number of participants and the distribution of money, are a clear sign of pyramids... For the first time such methods of attracting depositors in our country were used by Sergey Mavrodi.

It should be remembered that real investment companies use a much wider arsenal of ways to tell about themselves and attract clients.

Feature 13. Anonymity

Information about the creators of the project is not advertised anywhere, they are simply absent, find out who created and is managing the project almost impossible.

Sometimes pyramid schemes refer to the fact that such information is a trade secret.

Symptom 14. To find out the details of the project, you need to attend a seminar or meeting

Potential contributors are attracted to a variety of events. Sometimes this method of attraction is also used by network marketing companies and financial brokers.

However, in combination with other signs from the list, such actions indicate the construction of a pyramid. Moreover, in the case of the pyramids, the participants in the meeting are actively persuaded to invest funds using various psychological techniques.

Sign 15. A reference in the agreement that the company has no obligation to return the funds invested in it

Pyramid creators are usually fairly well-versed in legal terms. Therefore, being insured against various legal proceedings, they are in the contract exclude clauses about the company's obligations to depositorsas well as money-back guarantees.

Often when investing in pyramids, investments are made out as donations or voluntary contributions. At the same time, investors are taught that it is impossible to formalize investments otherwise, and various legal reasons are given. However, such tricks should alert investors, that as explicitly indicate the financing of the pyramid.

Feature 16. The company is registered abroad, usually offshore

It is not uncommon to come across offers to invest in profitable foreign companies. Registration at a distance from Russia may indicate a pyramid, since it will be almost impossible to bring a company (organization) to justice.

Feature 17. The company is absent at all

In this case entity not registered at all. A certain number of ordinary private (natural) persons exchange money.

True, in such schemes, the owners of the project do not try to hide the fact that they have organized an ordinary financial pyramid.

Feature 18. There are no licenses to carry out financial activities

Raise funds in Russia individuals can only be those companies that have received a license for such activities. Its absence indicates the illegality of the activity.

Symptom 19. The investor is not warned about the risks

Any option for investing funds is accompanied by risks. Companies should warn investors about this. Therefore, if risk warning is absent or even the investor is promised investments without risks, it is almost safe to say that this is a financial pyramid.

Feature 20. Prohibition of disclosing secrets

If an investor is asked to sign an agreement on non-disclosure of commercial secrets about the contribution made and the terms of the investment, most likely a pyramid scheme is taking place. Honest companies are unlikely to hide such information.

There are quite a few signs of financial pyramids, but it is not at all necessary that they be present all at once. But the presence of any sign does not necessarily mean that the company is a pyramid scheme. The main thing is that the manifestation of such signs should alert investors.

It is also important to know that most modern pyramids disguise themselves as the following organizations:

• investment firms;
• financial companies;
• organizations whose activities are related to network marketing;
• brokers.

It is important for a novice investor to learn how to determine whether a project is a financial pyramid.

7. Types of financial pyramids (single-level, multi-level, matrix) 📄

All pyramid-based fraud schemes, according to their inherent construction structure, can be divided into 3 (three) groups... Some creators claim that they managed to create a qualitatively new scheme. However, upon careful analysis, any of them can be attributed to one of the groups presented below.

1st type of financial pyramids - single-level

7.1. Sibling pyramids or Ponzi scheme

This type of pyramid is considered the simplest and therefore the most common. The name of the Ponzi scheme comes from the surname of an Italian fraudster who was managed to deceive the population thus.

In this case, the organizer of the pyramid attracts participants to it, guaranteeing quick large profits. In this case, it is enough to make a contribution; it is not necessary to attract new participants.

The first depositors are paid by the owner of the scheme from their own funds. When the fame of the pyramid begins to grow, the funds of new investors go to reward the old ones. As a result, the glory of the project as bringing real income inevitably growing ... Consequently, the number of participants increases. Many contributors make additional contributions.

Such pyramids most often position themselves as charitable or investment foundations as well mutual aid projects... Naturally, this is only a cover, in reality no activity is being conducted.

Inevitably in the process of developing a financial pyramid there comes a time when obligations to a huge number of participants constantly increase, and the entry into the scheme of new investors decreases. At this time, the owner of the project ends the activity and disappears with the collected money.

The lifespan of such a pyramid is determined by how popular it is. Usually it is from 4 to 24 months... After the collapse of the pyramid, profit remains no more than 20% all contributors.

There are several examples of Ponzi pyramids:

• MMM, created by Sergei Mavrodi;
• tannenbaum's AIDS Drugs Funding Project;
• iPhone pyramid;
• other.

7.2. Multilevel financial pyramids

2nd type of financial pyramids - multilevel

The scheme for constructing such a pyramid is similar to the structure of network marketing companies. Such pyramids are usually covered by trading activities or highly profitable investments.

However, even when there is a product, it is different low quality and not worth the price set for it... Such products are intended to distract the attention of depositors, where such structures usually promise income at a level exceeding 100% annual and reaching 450-500% .

Each participant in the project must pay an entrance fee. Funds obtained in this way distributed among the participants , located at higher levels - those who invited the newcomer and several above him.

Further, the new participant must attract several new ones to the structure. Most often, it is required to bring from 2 (two) to 5 (five) depositors. To do this, either directly or covertly he is told that the project needs new participants, and only if they are attracted the depositor will start receiving income, gradually recouping the invested funds and going into profit.

It turns out that, as in ponzi scheme, money is redistributed between depositors. The number of levels is gradually increasing, while the number of participants increases exponentially.

At about 10-15 levels, the number of depositors can be equal to the population of an entire state.

Sooner or later the moment will come when there will be simply no one to attract further. It was at this time that the organizer curtailed the project and disappeared with all the collected money. As a result about 90% depositors lose all their investments.

Multilevel pyramid schemes do not last long. Most often, their collapse occurs no later than six months from the date of creation. To extend the life of the pyramid, the organizers change its name, location, or go online.

The most famous structures of this type are:

• Talk Fusion;
• MMM 2011 and 2012;
• Binar.

7.3. Matrix-type financial pyramids

Such pyramids represent complicated multilevel structures... A real product is very often present here, for example, precious metals , slimming teas or fictional paid programs for training beginner businessmen.

3rd type of financial pyramids - matrix projects

Despite the fact that such companies are pyramid schemes, many sincerely believe that this is a new type of investment.

The scheme of work of such companies is approximately as follows:

1. The participant pays when joining the project an initial fee... After that, he waits for the entire level to be filled.
2. As soon as the lower level is filled, the matrix will be divided into two identical ones, and our participant will rise one level up.
3. Now more participants need to be recruited to fill the lower level.
4. This is how the further division of the matrices gradually takes place, and the participant will gradually rise higher and higher.
5. As soon as the participant reaches the first level in his matrix, he will be paid a reward. It can be money or a commodity, such as a gold bar. The product, if desired, can be sold to the very same company.

In fact, it turns out that in the course of creating a matrix pyramid, lower-level participants are thrown off to buy a gift for a first-level participant. Each downstream participant gradually moves up. To speed up this process, it can help attract new depositors.

It is important to understand that in the conditions of matrix-type pyramids it is very vaguely indicated how to get the reward due. Most often it is indicated here that for this it is necessary to wait until the matrix is \u200b\u200bfilled. At the same time, it is not clear when this will happen and whether it will happen at all.

However, matrix pyramids last longer than others. But don't hope: collapse will surely happen to them.

To conclude this section, let us compare three (3) types of pyramids. For convenience, the comparison result is presented in the table.

Feature for comparison	One-tier pyramid	Multilevel pyramid	Matrix pyramid
Structure	In the center is the owner of the project. Deposits come to him until a certain moment, it is he who distributes the rewards.	Several participants. The organizer of the pyramid interacts only with the first level, but oversees the activities of the entire pyramid.	The centerpiece is a few active participants. They are interested in newbies, while they bring new investors.
Source of education profit	Investment as well as charitable projects.	Exclusively the entrance fees of new members. The pyramid structure can be masked by the sale of various products.	Contributions from incoming contributors only. To show off, complicated schemes of selling a product are used.
Validity	Depends solely on the persuasiveness of the organizer.	The collapse comes very quickly, as the pyramid grows at an accelerated pace.	It can be quite lengthy, because the exact timing of filling the matrices is unknown.

As you can see from the table, the pyramids fall apart anyway. Therefore, we recommend that you take a more careful approach to investing your money and choose the most reliable of them. For example, it is better to choose than to invest in HYIPs or other dubious projects.

8. What is the difference between a pyramid scheme and network marketing companies 📋

Many believe that network marketing and financial pyramids — the same phenomenon... This is due to the fact that in a superficial comparison, these two concepts have certain common features... However, it is important for investors to learn to distinguish between them.

Network Marketing Is A Legal Option promotion of goods from manufacturers to consumers, thus eliminating several intermediate intermediaries. In such structures, the income of each participant is compiled based on the amount of goods that his wards will be able to sell.

It turns out that if the participants in the scheme do not buy or sell anything, but simply register, they do not receive income. At the same time, registration with network marketing companies absolutely free or the entrance fee is very small - up to 500 (five hundred) rubles.

Problems often begin in situations where the pyramid tries to disguise itself as network marketing. To determine what kind of company it is, it is important to look for the signs of financial pyramids, which we described above in the article.

Types of financial pyramids on the Internet - magic wallets and HYIPs

9. Financial pyramids on the Internet (online) - HYIPs and wallets 💸💻

The development of the Internet makes it much easier create and develop pyramid schemes... This allows you to expand the geographic coverage of potential investors. At the same time, significantly decreased advertising costs.

The development of the pyramid structure is facilitated by the complexity of tracking the movement of funds through electronic payment systems.

Sites are rarely registered with real persons, or information about the owner is hidden. When creating pyramids on the Internet, it is difficult to find a fraudster when they collapse to prosecute.

The largest financial pyramid in the network – Stock Generation... Its organizer is the well-known Sergei Mavrodi. It represented a certain gamble. In accordance with the terms of this game, shares of non-existent virtual firms were traded.

The conditions were like exchange trading: the share price moved both up and down. The pyramid existed for 2 (two) years. After it collapsed, a huge number of people suffered: according to various estimates, from 300 (three hundred) thousand to several million people.

Another very large projects from Mavrodi – pyramids MMM-2011 and 2012 ... For the purpose of their creation, the "Mavro" was invented, which is a virtual currency.

In the first draft it was bought and sold through members who were guiding levels.

In the second - settlements were carried out directly between the participants in the pyramid, the essence of the project was reduced to the mutual aid fund. Naturally, the influx of participants and cash contributions came to naught. They began to steal money from the pyramids, the pyramids began to close.

Mavrodi tried to restart the project several times. However, the credibility of the creator has decreased significantly, so the size of the pyramids has become much smaller.

Internet pyramids are very diverse and the most popular among them are 2 (two) groups: hypes , and magic wallets ... Let's try to understand the features of each of these schemes.

9.1. HYIPs (type of financial pyramid)

HYIPs or in another way HYIP projects are investment projects that promise high returns. HYIPs are built on the principle of a financial pyramid.

Such projects are covered by investments in securities , share investment funds sometimes claim to be doing trust management... In some cases, HYIP organizers do not report anything at all about what kind of activity they are carrying out.

Some Internet users have the opinion that investing in HYIPs can make good money, the main thing is to make the investment correctly. Furthermore, there are publications on the Internet, in which participants in such projects describe in detail the correct strategies for investing in HYIPs. They tell you how to invest in such a way that you exit the project on time (before the collapse of the hype) and get significant profits.

But don't forget that similar internet projects organized according to the principle of ordinary pyramids... They inevitably go through all the stages of development inherent in the pyramids. Therefore, sooner or later, the HYIP crashes without fail.

In pyramids there is a movement of funds from one participant to another, therefore, perhaps someone will be able to make money on HYIPs. However, they will do this at the expense of contributions from new contributors. Moreover, the percentage of lucky ones is very low. Anyway most of the contributions will end up in the pockets of the organizers of the pyramid .

HYIPs are like some real companies and financial instruments. For example, on the Internet there are, which are one of the many ways to invest. These companies are engaged in real capital investment in financial instruments with high level income. Just like HYIPs, these are of high risk.

It turns out that these two types of companies are very similar and it is important for investors to be able to distinguish between them. There are a number of signs that are typical for HYIP projects, but not typical for venture funds.

Among them are the following:

• investment objects are invented or do not correspond to reality;
• the site is too colorful;
• the essence of the project is blurred, it is not completely clear what it consists of;
• too intrusive advertising, claiming that the return of funds is guaranteed, there is no investment risk, too aggressively convincing to invest;
• it is impossible to find the organizer's data - company name, address, telephone number, who is in charge;
• there is no information about the availability of licenses, registration certificates, or these documents are fake;
• the promised income level exceeds 1-2% per day, however, there are HYIPs where this indicator is 0,5% , this feature cannot be applied to them;
• blurry or too difficult conditions making a profit.

To transfer funds to HYIPs, they usually use electronic wallets that do not need to be identified, for example, Qiwi, Perfect money, Payeer... As a result, it becomes almost impossible to calculate the real data of the counterparty.

Anything that implies at least minimal personal identification is not acceptable for HYIPs. Almost all similar projects for this reason refuse use payment system WebMoney.

Depending on the level of income, there are three categories of HYIPs:

9.1.1. Low income

The lifetime of such pyramid schemes is from one and a half to three years... At the same time, the promised income is at a level not exceeding 15% per month... Many HYIPs of this type promise to pay 0.5% per day.

Traditionally, pyramids of this type are covered by companies that perform functions trust management various assets. At the same time, it is often quite difficult to distinguish low-income HYIPs from legal schemes.

9.1.2. Middle income

The lifetime of financial pyramids created in the form of medium-income HYIPs is from 6 (six) to 12 (twelve) months. The yield here is much higher than in the previous category and is about 3% daily... In a month, when investing in such HYIPs, profitability is promised at the level 15-60% .

Such pyramid schemes are characterized by rapid growth in popularity. This means that its peak will be reached very quickly, that is, the collapse of the pyramid will not keep you waiting.

9.1.3. Highly profitable

Such financial pyramids are developing rapidly. For about 2-5 weeks they go all life cycle... At the same time, the promised profitability exceeds 3% per day or more than 60% per month.

Slogans guarantee huge income for depositors in case of registration "here and now".

For the creation and successful functioning of HYIPs, not only theirs are important organizers, but also referrals... Under this concept, persons who are engaged in the promotion of the pyramid are united. They spread about the creation of the project.

Besides, the most important task of referrals is the agitation of netizens to join HYIP, that is, attracting as many new contributors as possible.

It is the competent actions of the referral managers that determine the further success of the project. They act as agents of the pyramid scheme. Therefore, the cooperation of the organizers of the pyramid and the referrals is carried out by entering into an agency agreement.

Interaction is carried out through all sorts, that is, referral managers earn money as a percentage of the contributions of the contributors attracted by them. This easily explains why referrals are so actively promoting HYIPs.

They post colorful and detailed stories (most often, of course, fictional), about how they hit the jackpot by joining the project. This is done by referrals in various blogs, social networks, as well as on forums.

Often, HYIP organizers offer their participants to independently search for new contributors using the referral program. As a result, the speed of the hype promotion on the Internet increases, providing a significant inflow of funds.

By analogy with the pyramid, during the growing popularity of the HYIP project, the promised rewards are paid to its participants. This kind of efficient functioning has been going on for some time. At a certain moment, the flow of income begins to decline, the flow of money becomes less than the volume of payments. This becomes a signal for organizers that it is time to close the project. Hype is closed, and the money collected by this time remains with its creators.

Thus, you can make money on HYIPs, but profit remains project creators, those who actively promotes it, and depositorswho managed to collect their money on time.

However, the number of winners is negligible compared to the number of participants who, as a result, lose their funds.

9.2. Magic wallets - a special type of financial pyramids

Recently, a curious way of making money has been widespread on the network, which is called "Magic wallets".

The essence of the method of making money is quite simple: you should send a small sum of money (most often from 10 to 70 rubles) for seven wallets. For this purpose, electronic money systems are usually used. Yandex and WebMoney... After that, you should delete the top wallet number, enter your own instead.

Many people believe that if everything is done correctly, enough about 100 (one hundred) or 200 (two hundred) messages, so that huge amounts begin to come to the wallet. The explanation is simple: the following who joined the project will transfer money to the wallet, after which they will also begin to actively promote the message.

In reality, it turns out that the system of work of magic wallets is an ordinary financial pyramid. Moreover, it is not subject to any control.

Making money in this way is almost impossible. First, there is no guarantee that those who decide to continue the chain of messages will send money to the previous wallets. Secondly, they can cross out more than one wallet number, as stated in the instructions, but more by entering their own instead.

But even if we assume that each next participant will do everything according to the instructions, the pyramid will grow at a tremendous pace. Even the population of the entire planet Earth will not be enough to cover 4-5 levels.

In theory, of course, the first participant after 2-3 levels can earn about a million rubles, and this is provided that each new participant will be able to attract 5 people... However, in practice, this situation absolutely unreal due to the same lack of participants.

Thus, getting rich using magic wallets will definitely not work. Moreover, electronic payment systems are making every effort to combat such schemes. They may well block the wallets indicated in advertising (spam) messages.

Security and financial monitoring services in electronic payment systems carefully monitor the appearance of such messages on the network.

Within a few days, for this reason, the pyramids cease to exist.

Financial pyramids - a list of new and old

10. List of old and new financial pyramids in Russia - from MMM Mavrodi to the newest 📜

In Russia, the first financial pyramids appeared after the collapse of the Soviet Union. In the early years of the transition to a market economy, a huge part of the country's population suffered from them.

The largest and most notorious pyramid is considered by many to be JSC "MMM"... The date of the company's creation is considered to be 1989. However, at that time, she was conducting a completely legal activity.

In 1994, JSC MMM began to operate according to the scheme of a financial pyramid... Project organizer - Sergey Mavrodi engaged in the active issue of 2 (two) types of securities:

1. shares were issued almost 27 million;
2. tickets were also issued - more 72 million.

The mass media actively advertised the company (pyramids). Everyone who was of a conscious age at that time remembers advertisement about Lena Golubkov... This, as well as promises to investors of profitability in the amount of from 500 (five hundred) to 1000 (thousand)%led to the pyramid a huge number of depositors. According to rough estimates, about 10-15 million Russian citizens.

Investors were not given absolutely any documents, there was no free sale of MMM's securities. In fact, only the company itself could acquire them. The cost of the securities was set directly by the organizer.

Around the pyramid MMM arose unprecedented excitement, which led to a sharp rise in the price of the company's securities. As a result, within a short period of time, shares with a par value of 1000 (one thousand) rubles, began to cost 125 000 rubles apiece. Naturally, the real price for them was much lower.

Among the contributors, information began to spread that the organizer of MMM Mavrodi has problems with law... He was accused of conducting illegal business activities, as well as problems with the tax authorities.

Panic was growing among the population. As a result, the cost of securities began to fall sharply... As a result, they became cheaper by about a hundred times. In fact, the securities of JSC "MMM" have become useless, worthless "candy wrappers".

The result was the storming of the office of the MMM company, where Mavrodi was arrested. The organizer of the pyramid was sentenced to 4.5 years in prison. The damage suffered by the population of the country from the actions of an entrepreneur totals about 3 (three) billion rubles.

At the same time, Mavrodi succeeded to shift the blame for the collapse of the pyramid to the state... He argued that a successful company that promised enrichment to many citizens had been purposefully destroyed.

Subsequently, other financial pyramids were created by Sergey Mavrodi:

• Stock Generation, which operated on the Internet;
• MMM-2011;
• MMM Global Republic of Bitcoin.

In connection with the resounding success of the MMM financial pyramid in Russia in 90s (nineties) and 2000s (two thousandth) years, other similar projects were created.

The most popular among them are:

• Vlastina;
• Ruby (SAN);
• Selenga Russian House;
• Hopper-invest;
• Tibet.

The number of victims of the actions of financial pyramids the inhabitants of Russia numbered millions of people. In each of the schemes, citizens lost from several million to several trillion rubles.

Almost all the organizers of financial pyramids were imprisoned, some managed to escape in an unknown direction.

Despite the dire consequences of the activities of the pyramids during that period, they continued to exist.

This is explained quite simply: most people want to get rich without doing anything. Since almost all people are quite greedy and gullible, ready to invest in any projects that promise unprecedented profits.

The development of the Internet also played a huge role in the existence of financial pyramids. Through the network, it is much easier to conduct advertising campaigns, as well as take part in various projects. For depositors, the pyramid can be compared to a casino: it is almost impossible to guess if he will win or lose money.

List of new financial pyramids that are popular:

• MMM 2012 and 2016;
• Super Piggy Bank;
• Recyclis;
• Eleurus;
• Credex and others.

In connection with the huge number of victims of the actions of financial pyramids in Russia, the legislation was revised.

To date, for the organization and distribution of such schemes introduced criminal and administrative responsibility.

11. What to do if money has already been invested in a financial pyramid 📌

It so happens that people first invest money and only then realize that the project they have invested is ordinary financial pyramid... What to do in this case?

Experts recommend to calm down for a start, since in this case it is difficult for a person to assess the situation and make the right decision. Next, you should conduct a thorough analysis of the current situation and take the necessary measures to resolve it.

Professionals suggest taking the following measures:

1. Contact the office of the company to which the funds were transferred... In cases where this is impossible for any reason, you should contact the person from whom the invitation to join the project was received. It is important to understand that the probability of a return on investment is higher if there are any documents confirming the transfer of money.
2. If scammers refuse to return the invested funds, they should notify them of the intention to file an application with the prosecutor's office and the police.
3. If the threats fail, you need to immediately contact law enforcement... At the same time, it is necessary to recall the maximum of known information: the name and address of the company, detailed signs of the persons with whom the communication took place, what promises they give, what they are selling and other useful data.

Important! Write a statement as quickly as possible, since it is highly likely that by the time law enforcement agencies begin to take action on it, the fraudsters will have already disappeared.

12. Conclusion + video on the topic 🎥

Despite the huge number of victims of investing in financial pyramids, people continue to invest in such schemes. Someone does not know about the possibility of deception, someone expects to withdraw funds before the collapse. In any case, it is useful for every investor to know what signs indicate financial pyramids.

If it turns out that the funds have already been entered into the fraudulent scheme, you should try to get your money back without unnecessary panic.

We suggest watching the video - "What is a financial pyramid?":

In conclusion, we suggest watching a documentary about MMM:

The site magazine team wishes you good luck and success in your financial affairs. If you have any comments or questions on the topic, then ask them in the comments below.

In 1994, after the collapse of the Soviet Union, our TV screens were filled with ads about Len Golubkov. Short videos told about how easy and simple it is to multiply your savings. This large-scale investment project, widely known as "MMM", ended with a global collapse of the hopes of millions of people. And its organizer Sergey Mavrodi explained the success of this project by human greed and a thirst for easy money.
It was a long time ago, in the dashing 90s. Now, of course, the time is different. But motley financial machinations are growing by leaps and bounds.

If you have not yet seen the TV sketches about Lena Golubkov, you are welcome:

Unfortunately, at the moment the laws of our country are not able to protect their citizens from the activities of such financial adventurers. Therefore, everyone who may be faced with an invitation to fraudulent earning schemes (and as practice has shown, it can be absolutely any person), you need to be aware of what a financial pyramid is, how it works, what are its signs, and what to do when you are invited into questionable projects.

The essence of the pyramid scheme

The financial pyramid is a special way of getting money out of thin air for its organizers and “lucky ones” who have entered the forefront.

That is why, the main characteristic feature of the financial pyramid is the way of receiving income - not from the sale of goods or services, but from the influx of new participants.

Even despite the presence of some kind of trade in some pyramid schemes, profits are made precisely from the new people invited to this project.

This basic characteristic must be remembered once and for all. Whatever sauce the company's activities are served under, in most cases they will still explain to you that for each invitee you receive a certain amount of money.

Or they won't explain. Because the financial pyramid can imitate some kind of "exclusive" and "brilliant" investment project. But the bottom line is still the same: you can get money only through the influx of new investors (or investors).

Contributions that new participants bring to the pyramid are distributed between the organizers and previous participants. The pyramid lives and thrives on the constant arrival of newcomers, and when this flow weakens, and then stops altogether, the financial pyramid collapses. Accordingly, those who came at this time were not lucky - they will not be able to return the money.

But let's take everything in order.

What does a financial pyramid look like?

It just so happened that in the 21st century there are more and more variations of financial pyramids. The essence of her work remains the same, but the masks are being invented more and more sophisticated. Usually pyramids can call themselves investment projects, social funds (which may be closely related to charity), network companies (which, of course, are not in reality), credit institutions etc.

For clarity, we give a diagram of a simple, classic financial pyramid:

Stage 1.The organizer attracts the first 4 participants to invest $ 100, promising that for each newcomer brought in, they will receive $ 25.

Organizer's profit: 100 * 4 \u003d 400 dollars

Cost: $ 0

Stage 2.Each of the 4 participants brings 4 people, who, in turn, invest $ 100 and will also have to receive $ 25 for each newcomer.

Total income organizer: 4 * 4 * 100 + 400 \u003d 1600 + 400 \u003d 2 000 dollars

Expenses : 4*4*25=400 dollars.

Net profit: 2000-400 \u003d 1 600 dollars

Stage 3. Each of the 16 participants who entered the project at stage 2 brings in 4 newcomers.

The total income of the organizer: 16 * 4 * 100 + 400 \u003d 6400 + 1600 + 400 \u003d 8 400 dollars.

Costs \u003d 16 * 4 * 25 \u003d 1600 + 400 \u003d 2 000 dollars

Net profit: 6 400 dollars.

Etc…
Thus, the more a person enters the pyramid and brings new investors, the higher the profit of the organizers. But the faster it will collapse, because the number of people who can join it - sure.

As soon as the influx of new investors stops, it dries up and cash flow... The organizers usually disappear at this stage. And the last depositors are left with nothing.

But, we repeat once again - in our time "variations on the theme" grow like mushrooms after rain. And the global Internet, which has become available to everyone, plays a leading role in this growth. Therefore, in order not to become victims of enterprising and creative swindlers, we suggest that you familiarize yourself with the list of the main types of financial pyramids.

Types of pyramid schemes

Financial pyramids can be single-tier and multilevel.

Siblingpyramids, in fact, are unpretentious - depositors simply bring money for high percent or fixed payments that are paid out of the money of subsequent contributors. The notorious "MMM" was arranged according to this type.

Tieredpyramids use complicated schemes, for example, they impose the obligation to invite several more people in order to make a profit.
And now we turn directly to the varieties.

1. The classic type of financial pyramids

We examined this type of pyramid scheme in our previous example. Investors bring in money and receive their income from new arrivals. As they say, the scheme is as old as the world, everything is simple and clear. However, such schemes still exist, which means that people voluntarily participate in such events.

1. Mutual aid funds, "social and financial" projects, etc.

This is one of the most insidious types of financial pyramids. the creators cleverly disguise the essence of such organizations. They usually come up with an idea, often under the guise of good intentions. Used for greater persuasiveness in addition to charitable activities. They talk about their very complex, ingenious, beneficial for all ways of distributing income between the participants. They run a great advertising campaign, beautifully presented on the Internet. But the meaning is still the same - money is made out of thin air, there is no product, and as soon as the flow of new participants weakens, the project falls apart.

1. Investment financial pyramids

As a rule, such pyramids do not promise quick payback. Their organizers talk, for example, about unique technologies or phenomenal and original investment projects that promise to be super profitable, but in the future. These companies can have everything required documents, they will be registered with the necessary state authorities. But after a while, the organizers of the "highly liquid" unique projects disappear from the sight of their investors, leaving them unpleasant memories and rewarding life experiences.

If venture capital funds and private investors are not interested in this "highly profitable" enterprise, and the organizers have to talk about the grandiose benefits of the project to ordinary people who are far from investing ... Then 99.99% that this is a financial pyramid.

1. The financial pyramid under the guise of network marketing

This type of financial pyramid, perhaps, can be given first place in its danger and insidiousness. The fact is that network marketing (or MLM marketing) is a completely legal and transparent working tool for doing business. But with its multi-level scheme, it is somewhat similar to the principle of financial pyramids.
However, these two financial instruments have one significant difference:

mLM necessarily has a product (product or service) that is directly involved in making your profit - your income depends on the proceeds for this product or service.

But in the financial pyramid, there is either no product at all, or it is added to the scheme for a diversion. For example:

• Goods and services that are much cheaper in market conditions
• Goods and services that are not in demand among consumers, have no value

Most likely, such pyramids will contain big contribution... It is very likely that in return you will receive some goods of dubious quality and purpose, or maybe legal support, which you will need, at best, only once for the entire paid period. And they will almost certainly tell you that your main duty is not to sell goods, but to attract new members of this closed club, because these exclusive services and goods can only be used by those who have entered this pyramid.

Additionally, I would like to note that these types of financial pyramids have adopted elements of the corporate culture of network companies. Various self-development trainings are used in the work, "free" training for club members is carried out, mentoring and patronage are used, seminars and parties are held. Very tempting, at first glance, all this looks to an uninitiated layman. Therefore, people are often led. They borrow money and at first fly on wings from new experiences, information and acquaintances. But then for the majority there comes a great disappointment and parting with their invested hard-earned money.

How to calculate a pyramid scheme

So, we smoothly come to one of the most important sections of this article.

A good friend called you and with genuine enthusiasm talks about a great opportunity to get rid of the oppression of your employer, become a financially independent person, stop working for your uncle, put together your team, become a successful and talented leader and, as a result, live for your pleasure, getting a decent passive income.

Or maybe you were just offered to participate in a good kind project that can help the whole world become better. To give you the opportunity to do good, receiving a reward for it, thanks to the ingenious win-win schemes of the organizers of this project.

How can you understand these intricacies and not fall for the bait of financial scammers?

First, study in detail the signs of a financial pyramid.

Signs of a pyramid scheme

1. Promises of high returns and quick payback

The very first sign of a financial pyramid is its high income, unusual for the level of the population. If in percentage terms, then certainly higher bank interest... This is at least strange. And if, along with a high income, you are guaranteed break-even, which, in fact, is economically impossible, then this is a pyramid most likely.
The promise of a quick payback should also alert you. Imagine how many literate financial investors and large businessmen in our country. Why are they still racking their brains over how to optimize their business and what niche is worth investing in additionally. It would not be easier for them to invest part of their money in such a highly profitable financial instrument?

The question is, of course, rhetorical.

1. Large amount to enter

This feature is optional, but very often accompanies pyramid schemes. You are told that you are obliged to invest a tangible amount of money, and they are giving weighty arguments at first glance.

1. Your task is to attract your friends to this project

• If one of the main tasks you are charged with conducting a large-scale advertising campaign among your friends and relatives….
• If you are reassured that you will be taught special techniques, psychological tools for effective job recruitment ...
• If your questions about the moral component answer you that you should not worry - after all, this is how you take care of your loved ones, helping them to find success and financial independence….

Better to leave right away.

1. Unique unprecedented technologies (know-how)

Yes, just such technologies, exclusive dizzying high-yield projects that turned out to be unfairly underestimated by large investors.

1. Passive, very passive income

• If you are promised maximum results for minimum effort ...
• If you are told that you will be financially independent, doing almost nothing ...
• Or they warn that only at the beginning you will have to sweat a little - invite the right number of people to the project and help them bring their own ...

Remember the adage about free cheese in a mousetrap.

1. Lack of registration and permits

You will not find many financial pyramids required licenses and permissions, they may not even be registered in tax authorities... Be sure to request an extract from the Unified State Register of Legal Entities, ask if there is a head office, if this company is really there. But, again, if all the necessary documentation is properly executed, this does not guarantee the purity of the intentions of this project.

1. Veiled financial transactions

Usually, pyramid schemes are carefully trying to hide their financial schemes. Investors do not know where and how money is distributed. Documents are not drawn up or provided. If you come across this, be on the lookout.

If you've already fallen for the bait ...

Firstly, take it easy, do not scandal.

Secondly, demand the money invested in full return, as they say, "in an amicable way." Be persistent and calm. You can first study your rights, memorize the article of the Criminal Code of the Russian Federation on fraud. When a person is legally savvy, it is more difficult to manipulate them.

Thirdlyif necessary, contact law enforcement.

And finally ...

If you think that at the beginning of the project's existence you can earn money, we will tell you: "Yes, you can." But think: by deliberately participating in such machinations, are you not becoming an accomplice? After all, at that unfortunate end of the pyramid, anyone can be, including a person close to you. And even you, if you were invited, for example, a year earlier.

Remember that the balance in the world is always restored, and your desire to get rich quick at someone else's expense will certainly return to you.

Be attentive to all financial activities, who owns information - owns the world.

The phrase "financial pyramid" has become the embodiment of deception and fraud. However, today this method of building a business continues to be used throughout the world. Entrepreneurs are coming up with new ways, and this phenomenon is not going to disappear. What are the signs of pyramid schemes? What is their essence? Let's take a closer look.

Pyramid mechanism

Building a business in the form of a pyramid involves the involvement of an ever wider segment of investors, who ensure the stability and profitability of the system. The scheme of the financial pyramid is quite simple: new investors provide the return on investments of previous investors. The higher the entry level, the greater the likelihood of making a profit. Almost zero chances of getting money from those who are at the base of the pyramid, and most of them, as is obvious. The greatest profit is made by those who are at the top, and possibly near the top. Pyramid investing is not always a scam, but it is always vulnerable. Even a small malfunction of the system can lead to its crash. Most often, a collapse occurs when one or more large investors want to withdraw an investment.

There are several approaches to assessing the nature of pyramidal financial structures: firstly, such enterprises can have different organizational and legal forms; secondly, they are a growing system of debt obligations - the longer such a company can hold out, the more it will accumulate debts; thirdly, the pyramid can be viewed as a type of fraud, although there are some cases when such designs were created for good purposes. But they always act as a means of getting rich quick, therefore, they raise questions from representatives of the law.

The main signs of financial pyramids

Speaking of the pyramid business, it should be noted that it can be very diverse, and it can be very difficult to immediately recognize a scam. The first most important feature of pyramid schemes is the absence of authorized capital... Everything happens by attracting new investors. This one is high-risk for all participants except the organizers, but it can be very tempting for investors, since the creators of such schemes always guarantee fast and high income. It is guarantees that are the leading feature, since there are always risks for legitimate financial schemes, therefore they do not give guarantees. Usually such organizations do not have any licenses to carry out financial transactions. They offer for sale not usual financial products, but some of their own inventions: shares, loan agreements. Also, a sign of the pyramid scheme is the clause in the agreement that in the event of the collapse of the company, the investor does not receive anything and has no right to make claims. There are also signs of pyramid schemes associated with promotion: they are always very active, even sometimes aggressively advertised; organizers devote a lot of time and effort to PR campaigns. To hide the absence of real investment or production activity, the organizers use a lot of special vocabulary in their speech, they create the illusion of careful thought and validity of the scheme. Any attempt to delve deeper into the study of the peculiarities of the company's work is accompanied by statements of trade secrets. Contributors are organized into a kind of community of like-minded people, the participants of the scheme are motivated to involve new players. For this they are often offered additional bonuses, most often in the form of an additional stake in the business - in the form of a block of shares, for example.

Varieties of financial pyramids

There are several attempts to classify pyramid financial constructs. These schemes are constantly being improved and modernized, so it is unlikely that it will be possible to cover all types within the framework of one typology.

By the way of organizing business, one can distinguish "clean" pyramids that do not conduct any activity at all, except for registration of participants and fundraising, and "camouflaged" under the most different types businesses: foundations, clubs, networks. You can also divide such companies according to the declared purpose of fundraising: some offer earnings and involve people with promised profits, others work under self-help clubs. Some disguise themselves as companies that sell some goods or services (more often than others, they feature the Forex market). There are pyramids that mimic social enterprises or non-profit foundations.

Today it is common to find organizations that present themselves as consumer cooperatives or alternative programs to official mortgage and loan companies. Today, a new pyramid appears almost every day, and the Internet provides enormous opportunities for their reproduction. This allows such schemes to be divided into online and offline designs. It is also possible to divide the pyramids according to the intentionality of harming citizens: there are companies that are initially created with fraudulent intentions, and there are large investment projects that were conceived as a real business, but as a result of errors and miscalculations, they turned into pyramids. The latter often lead to the emergence of financial "bubbles" - an unreasonably high flow of investment in a project, which can provoke a loss of control and destruction of the company.

A special category is made by the official pyramid systems, which are supported by the state, for example, this is how pension funds are arranged in many states. Current retirees receive benefits from contributions of future disabled citizens. Despite the fact that the leadership of the countries talks about various investments of pension funds, but often there are almost none, since the pension burden in developed countries is becoming higher: life expectancy is growing, the number of able-bodied population is shrinking, so invest pension funds there is simply nothing, and there are significant risks of collapse of these schemes.

Advertising and promotion

An important feature of pyramid schemes is a special advertising activity. These firms need very rapid growth in deposits so that people do not have time to start demanding dividends, and at the same time, so that large amounts of funds are quickly formed. These purposes are served by massive advertising of financial pyramids, which has its own specifics. Such advertising campaigns appeal to the emotions of a person; they try to lull his rational part and urge him to take action without hesitation. Advertising communications are usually built around a certain person, stars and authority figures are often attracted. It is very rare to recognize the real leaders of the pyramid. All messages are built on the endless motivation of the consumer: they tell him how he can get rich quickly without doing anything, and they give an unclear explanation. The purpose of advertising is to nudge you into immediate, irrational action, and it works like a shutdown mechanism. Due to obsession, aggressive demonstration of close success and simplicity and the story that many have already achieved success, and you may not be in time, a rush demand is created.

Much attention in such organizations is paid to PR-actions: they always have excellent presentations, impressive publications in the media. Communication is often built around a brand character that is meant to inspire trust.

World experience

Our financial pyramids of the 90s, of course, were not a new invention. The world economy has been repeatedly shaken by loud company collapses and ruin of citizens. Charles Ponzi is considered the first in the history of the creator of the financial pyramid; today his name has become a household name and is the designation of such schemes. He in 1919, he came up with a scheme for the exchange of international exchange of coupons, which was supposed to bring huge profits. He managed to find several investors, to whom Ponzi promised 45% profit in just 3 months. He was not going to carry out any exchange of coupons, especially since they could not be exchanged for money, but only for postage stamps. But the scheme worked, the investors simply did not bother to grasp the essence of the proposal and began to bring money. Ponzi began paying the first depositors - and this spurred the excitement, money flowed like a river. The pyramid was brought down by the publication in the newspaper, in which the journalist considered that there should be several times more coupons bought with the money invested than is physically possible. Investors rushed for money, the company stopped its activities. Money was found in Ponzi's accounts, which was divided among the victims. They managed to get back about 40% of their investments, and this was not the worst scenario in history.

After that, the world of finance knew many more pyramid schemes. The most famous of them were the schemes of Lou Perlman, Stanford International Bank, L&G and Yingkou Donghua Trading, W. Feng and many others.

One of the largest pyramids-centenarians was created in the USA by B. Madoff. His company was considered a successful investment project, very famous people brought money here and many large banks the world. For 20 years, Madoff managed to balance, giving out interest by constantly attracting investments. It all ended unexpectedly, after the sons of the financier told about the essence of their father's enterprise. In a private conversation, he told them about the secret of his success, and they reported him to the police. Madoff was under investigation for a long time, and at the age of 71 he was sentenced to imprisonment for a term of 150 years.

Russian history of the pyramids

Mavrodi Sergey Panteleevich became the ancestor of pyramidal structures in Russia. In tsarist Russia, there were minor financial pyramids in the form of mutual support cash registers and mythical investment projects, however, they did not reach a large scale. There was no possibility of private investment in the USSR, and therefore there could be no question of such scams. Financial pyramids in Russia flourished during perestroika. People were overwhelmed with a thirst for earnings, and the stream of scammers did not fail to take advantage of this.

The most famous and largest pyramids, besides MMM, are the companies "Hoper-Invest", "Vlastilina", "Chara-Bank", Bank "Russian House Selenga", "Tibet". Tens of millions of citizens have suffered from their activities. Trillions of rubles were seized from them, which were never returned in any volume. 90s experience with loud pyramid collapses, legal proceedings and by looking for culprits around the world, for a while, it reduced the growth of such schemes. But since the 2010s, a new round in the history of pyramids begins, which flourish thanks to the Internet and the invention of entrepreneurs.

Mmm

In 1992, Mavrodi Sergey Panteleevich and his brother and wife set up companies. MMM, which sold its own shares and tickets, guaranteed income up to 200% per month. The company itself set the price of shares, they were not allowed into any free circulation. The shareholders did not receive any financial documents confirming the purchase. A shareholder could sell shares in the company and make a profit. The main essence of pyramid schemes is attracting depositors, and MMM has successfully used this mechanism. The population at this time was catastrophically financially illiterate and very gullible, and Mavrodi played on this. For two years the company flourished and grew rich, some investors managed to get income and thus contributed to the popularity of the company. MMM was distinguished by a creative approach to advertising: a mini-series about Lenya Golubkov and his family became a real motivating film for ordinary people, and the phrase: "I am not a freeloader, I am a partner" went to the people. In 1994, claims for non-payment of taxes appeared against MMM, but Mavrodi denied these charges. All this provoked a panic among the depositors, and the avalanche circulation of shareholders for money begins. In 1997, MMM was declared bankrupt, and the creator of the pyramid was accused of fraud. In total, almost 15 million people suffered from the activities of the MMM, but only 10 thousand were officially recognized as victims. The damage is estimated at 3 billion rubles.

New opportunities

The advent of the Internet has led to a new round of development of the pyramidal type of business. The reason that pyramid schemes on the Internet have become so popular is the ability for creators to maintain their anonymity. There are many tools for transferring money on the web that are poorly monitored by regulators. This is what scammers use. The most common type of financial schemes on the Internet is HYIPs. These investment programs with very high risks today offer some kind of profitable programs. But in reality, the profit is obtained by attracting more and more new players. The organizers of the pyramids on the Internet assure that there is no risk in their schemes, since the number of potential participants is still very large. But this argument does not work, since any news feed can provoke panic and the collapse of the pyramid. Also on the network today you can find traditional models of pyramids, they are called scams (from the word deception). Such an investment pyramid is designed for the gullibility of people who will not check anything and transfer money. There are models that disguise themselves as games, which provide for the sale of some attributes of the game. Fraudsters launch new projects on the Internet every day and almost always go unpunished.

The most famous financial pyramids on the Internet

The most famous Internet pyramids today are the Seven Wallets games, NewPro and MoneyTrain, the Stock Generation virtual exchange organized by the notorious S. Mavrodi, the Perfect Money and Liberty Reserve payment systems, the WholeWorld investment pyramid and many others.

Networked business and pyramids

Frightened ordinary people today do not want to simply invest money somewhere, so the pyramids began to conspire under the network business, which, although it is also not very positively perceived, there are still a number of people who are ready to invest in it. There are many similarities between pyramids and networks, but there are also differences. To distinguish a fraudulent scheme from a real business, it is worth understanding what is the difference between them. MLM business always sells a real product. It can be of different quality, but still it always finds a buyer. They don't require too much entrance fee. They may offer to buy a starter package of products - then its price should be reasonable and usually preferential for beginners. The network company has a real address, shows the constituent documents without any problems, and usually does not hide its top officials. Income in the MLM business depends on the efforts and activity of the seller in sales, and not only on the number of people involved.

Caution rules

In order not to get hooked on scammers, it is worth remembering simple precautions. You should not give in to promises of guaranteed income, in modern world there can be no guarantees of finance. When joining an affiliate program, you need to estimate the amount of deductions "up". In trading companies, it does not exceed 5%, but if they promise to deduct 10% or more, then this should alert. Wherever you take money, you need to carefully check the constituent documents, address and contacts of the company. It should be remembered that online reviews can be moderated and managed by the owners of the pyramid, so you should not blindly trust them.

Responsibility

If a person has a question: how to create a financial pyramid? Then he can be advised the following: to think about responsibility for their actions, and only after that start to act.

All countries around the world have been fighting financial fraud with varying degrees of success. In Russia, it is provided for financial pyramids. The amendments to the legislation have come a long way, and only in 2016 they were finally signed by the President of the Russian Federation. The main punishment for the founders of this type of business is fines. If more than 1.5 million rubles are attracted, the fine will be 1 million. If the pyramid is larger than 6 million, then the collection will be more - 1.5 million rubles, as well as forced labor and even imprisonment. The difficulty of bringing fraudsters to justice is that the law on financial pyramids names only the following 5 types of pyramids:

1. Those who do not hide their essence (as was the case with MMM).

2. Companies that appear to be a legitimate alternative to mortgage and consumer borrowing.

3. Firms that are conspiratorial under pawnshops, microfinance and credit organizations.

4. Companies that, under the guise of insurance, refinancing, debt settlement services to various borrowers, require large incoming contributions.

5. Organizations that pose as players financial market, in particular, participants in the Forex market. And this list does not exhaust the whole variety of companies that operate on the principle of pyramids.

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