PYRAMID SCAMS

Pyramid Scams are all types of schemes that follow a pyramid style structure. There is usually a very clear pyramid structure however, sometimes this isn’t always clear as they can grow quickly and globally.

Pyramid schemes usually start out with someone selling a product or service but require you to invest a small amount in turn allowing you the right to sell this product/service to others below you. The people below you then go on to pay you a fee to join and then in turn they have the ability to sell the product or service.

The person above you also earns off every sale of the service or product of everyone under you all the way to the bottom.

Schemes like these are illegal in most countries around the world where regulated markets exists.

Pyramid schemes are not to be confused with affiliate marketing or products and services like Avon/Tupperware.

How they operate

The product or service offered by Pyramid Schemes often don’t have tangible value and often require a user below to purchase to be able to participate. The schemes grows the more users buy in and the users toward the top of the scheme earning all the profits due to the shear number of participants below him/her.

Schemes like this usually grow very quickly due to the oversell of the value of the service or product and often the item on sale is presented as an opportunity that is a once in a lifetime or under extremely short time limits to add more pressure.

How to spot the scam

Pyramid Scheme operators have become very sophisticated with hiding or masking the Pyramid Scam they’re operating.

Pyramid structures exist throughout society, from school where authority is at the top through to large corporates, thus spotting a pyramid scam can only really be done using logical thinking.

There is no get rich quick scheme. This is the first and foremost thing to ask yourself. Anything that represents itself as a get rich quick scheme is most likely a scam off the bat.

Another point to ask yourself is does the product/service have value? Can I get this product from somewhere else? Why is this product only exclusive to the group and why do I need to buy from someone and then only be able to sell a product to those below me? You’ll quickly find out what your dealing with when you ask yourself these question.

Dear Clients,

Kindly note that Aurora Capital Finances will not continue to provide any trading services at this time.

Company Closure procedures have been put in place, and all trading accounts will be closed by 01 February 2024.

Should you require any assistance, please contact the Support department on email:
[email protected]