This presentation contains special inputs from Faisal Abidi around the insidious nature of Pyramid Schemes and what innocent people can do to stay safe from such well-crafted scams by fraudsters and spammers.

1. Save Yourself From Getting Trapped in the
Pyramid Scheme
Stick to Faisal Abidi’s Suggestions and Avoid
Such Scammers

2. Save Yourself From Getting Trapped in the
Pyramid Scheme
Table of Contents
● What Is A Pyramid Scheme and How Does It
Work?
● Reviewing the Types of Pyramid Scheme
● Faisal Abidi’s Take to Avoid Such Scams

3. Save Yourself From Getting Trapped in the
Pyramid Scheme
● What Is A Pyramid Scheme and How Does It
Work?
1. As the name suggests, Pyramid Schemes resembles a pyramid
structure; it starts from a single point and ultimately getting wider as
it goes to the bottom.
1. Pyramid Scheme is very sketchy as it promotes unsustainable business
practices.
1. Within such schemes, the top-level members are required to recruit
new members below them and the recruitment of underlings go on.
1. As the recruitment continues, the members pay upfront costs to those
who enrolled them and kick up the chain.
1. Pyramid Schemes depends heavily on the new recruits and has a little
or sometimes nothing to do with the sale of actual product and
services.

4. Save Yourself From Getting Trapped in the
Pyramid Scheme
● Reviewing the Types of Pyramid Scheme
The chances of getting stuck into scams increases if an individual have a
very little knowledge of investing.
One such prevalent frauds in the marketing sector is the Pyramid Scheme
and it has tendency to be disguised in many forms.
Beware of such scams by walking through their types, thoroughly.
Wait for the upcoming slides !

5. 1. Multi-Level Marketing Pyramid Scheme
● In general, Multi-level marketing pyramid scheme is a legal
business practice but sometimes it becomes hard to
distinguish between MLMs and pyramid schemes.
● The only notable difference between them is that unlike
Pyramid Schemes, MLMs don’t charge from the underlings
to recruit them.

6. 2. Ponzi Schemes
● Have you heard of the “robbing peter to pay paul” theory?
Ponzi Schemes works on that thesis.
● These schemes are the investment cons that promise high
returns in exchange for your investment. Most Ponzi
investors ends up losing everything by relying on the too-
good-to-be-true schemes.

7. 3. Chain Emails
● Scammers use chain emails to coax innocent recipients
into donating chunks of money to each individual whose
name is enlisted within the email.
● Chain emails makes the donor believe a theory, once you
donate a significant amount of money, you can edit the
first name on the list with your name. Afterwards you
need to send the email to your connection to receive huge
donations from them.

8. Faisal Abidi’s Suggestions to Avoid Such
Scams
Stick to Faisal Abidi’s Suggestions and Avoid
Such Scammers

9. ● Do not trust on the promises of high returns at short notice right away.
● Examine the product and services being offered to you before you invest
your money.
● Make sure that the emphasis is more on the product/service and not on the
recruitment.
● Ask as many questions as you feel like. Get a thorough understanding of
where and how your money is being invested.
● Keep tracking your investment.
● Don’t even think of investing when you are told that there is a little or no
risk at all.
● Analyze rationally the prospectus as it accounts for historical return of the
investment.
● Before you enter into investment, you must know your way out of it. So, ask
the exit strategy before start investing and get stuck ‘forever’.

10. Special Thanks To
Faisal Abidi,
Co-founder Of RNF Technologies