Just as ancient Egypt’s pyramids were the final resting places of the Pharaohs, today’s Internet pyramid schemes are where some folks’ investments go to die. These scams have been around forever and have crossed over into the Internet with gusto. The Better Business Bureau advises consumers to avoid pyramid schemes no matter how attractive they may look.
Last week the Securities and Exchange Commission charged a North Carolina businessman with fraud, accusing him of running a $600 million online pyramid scheme through ZeekRewards.com. The commission slapped an emergency asset freeze on the company, which may help victims recoup some of their investments. The SEC said the scheme was “on the verge of collapse” at the time they shut it down.
Nationally, the BBB received nearly 30,000 inquiries about ZeekRewards, Rex Venture Group and other names of the company associated with Paul Burks of Lexington, N.C. Some investors had put as much as $10,000 into the pyramid scheme.
Here are some suggestions to help investors decide whether a company is ethical or should be avoided:
Here are three simple questions to help you assess a moneymaking opportunity:
If you answered yes to these questions, avoid the scheme. Don’t let your hard-earned money get buried away forever in a pyramid scheme.