Grande Prairie RCMP have sent out a statement informing the public about new pyramid scheme that targets law-abiding citizens who have no idea they are breaking the law.
The Gifting Pyramid Scheme usually targets groups of law-abiding women who are convinced to recruit their friends or acquaintances, says the release. New members have to pay their recruiter a $5,000 ‘gift’ to join.
In turn, each member is expected to recruit eight new people so everyone can end up with $40,000.
Recruiters try to legitimize the buy-in payment by calling it a ‘birthday gift,’ a ‘transaction,’ or ‘a gifting circle’ and insist that the payment is not taxable or illegal because it’s only a gift.
RCMP say many be reluctant to talk to police because friends are involved, or you feel ashamed, but Grande Prairie RCMP needs assistance in spreading the word to prevent people from being victimized.
If you have been involved with such a scam report the matter to the Grande Prairie RCMP Detachment at 780-830-5700 and to the Canadian Anti-fraud Centre (CAFC) by calling 1-888-495-8501.