RCMP officers in Grand Prairie, Alberta, are warning residents of a new pyramid scheme that coerces citizens into breaking the law, without any idea that they’re doing so.
Dubbed as a “Gifting pyramid scheme,” fraudsters usually targets groups of women who are convinced to recruit their friends and acquaintances, with a $5,000 entry fee or “gift,” to join. After that, each member is expected to recruit eight new people so each member can charge $40,000.
Fraudulent recruiters often pass off these fees and payments as “birthday gifts,” a “transaction,” or “gifting circle,” and fraudsters insist the payments are not taxable or illegal because it’s only a gift.
“You might be reluctant to talk to police because your friends are involved or you feel ashamed but Grande Prairie RCMP needs your assistance in spreading the word to prevent people from being victimized,” said Constable Gabrielle Spencer.
Anyone that has been involved with such a scam can report the matter to the Grande Prairie RCMP Detachment at 780-830-5700 and to the Canadian Anti-fraud Centre by calling 1-888-495-8501.
Read the full story over at Energetic City.
