Warning issued for potential pyramid scheme targeting young people
It appears the scheme is targeting students and young people.
A warning has been issued urging people not to engage with a potential "flower" pyramid scheme circulating on social media in Ireland.
The Competition and Consumer Protection Commission (CCPC) has been contacted by people invited to take part in a scheme who reported they were encouraged to make an initial investment of €150 and then recruit others to invest.
They were told that once they recruited more people they would move to the next tier of the model.
This supposedly continues until the participant reaches the centre of the model and makes a return on their investment.
The CCPC say this particular scheme being reported uses the image of a flower and may refer to flowers or petals.
They also warn that it appears the scheme is targeting students and young people.
Pyramid schemes tend to work by offering a person the opportunity to buy into a scheme with the money going to those above the individual in the pyramid.
Participants are told they 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 person is, the more cash they get.
However, as is the case in all pyramid schemes, eventually the supply of potential investors runs out and the pyramid scheme collapses leading to the majority involved losing their money.
Pyramid schemes are illegal and those who knowingly participate in them are liable for prosecution.
The CCPC is currently investigating the flower pyramid scheme and is warning consumers not to engage with it.
If approached to join any kind of pyramid scheme, contact the CCPC through their helpline on 01 402 5555 or by clicking here.