The Irish public have been warned about a pyramid scheme that has been doing the rounds on social media – with many Dubliners on Instagram getting involved in recent days.
The scheme works by convincing people to invest €150, and recruit others to get involved. A return on the investment is normally promised once someone hits the centre of the flower after going through various “tiers”.
But as with most pyramid schemes, the number of people that can be recruited eventually runs out, leaving the majority of people stung out of the €150 they invested.
To make matters worse, pyramid schemes are illegal in Ireland, so getting involved can have legal consequences.
The CCPC warned: “The particular scheme currently being reported uses the image of a flower and may refer to flowers or petals. It appears that this scheme is targeting students and young people.
“Pyramid schemes generally work by offering individuals the opportunity to buy into a scheme. This money goes to those above the individual in the pyramid. Participants in the scheme can recoup their original investments and qualify for a pay-out by recruiting new members who join the pyramid below them. In theory, the further up the pyramid a participant is, the more money they get.
“As is the case in all pyramid schemes, inevitably the supply of potential investors runs out and the pyramid scheme collapses leading to the majority of those involved losing their money.
“Under the Consumer Protection Act 2007, it is an offence for anyone to establish, operate, promote or knowingly participate in such a scheme.”
If anyone spots this pyramid scheme on social media, or someone attempts to recruit them, they are urged to not get involved.
You can also contact the Consumer and Competition Protection Commission on 01 402 5555 or through its website here.
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Source: Dublin News