Pyramid scheme funnels revenues from all recruited members from lower levels of the organization to members at higher levels.
In the US, recruiting members of financial pyramid schemes is a criminal offense.
Pyramid schemes are based on income from employment fees, and not, as participants may believe, from the sale of real goods or services with real value.
Multilevel marketing (MLM) operations are legitimate business programs in which distributors earn money from the sale of tangible goods and from commissions on purchases and sales of distributors they employ.
Pyramid schemes are often masqueraded as MLMs, but their focus is on rewards from recruits rather than revenue from product sales.
White collar crime is a non-violent crime of deception or concealment in order to obtain or prevent the loss of money or gain personal or business gain.
Black money includes all funds earned as a result of illegal activities, as well as other legitimate income that is not taken into account for tax purposes.
A boiler room is a scheme in which sellers use high-pressure selling tactics to persuade investors to buy securities, including speculative and fraudulent securities.
Channel stuffing refers to the practice of a company supplying more products to distributors and retailers through a distribution channel than end users can purchase in a reasonable amount of time.
A High Yield Investment Program (HYIP) is a fraudulent investment scheme that aims to generate extremely high returns in excess of 100% on investments.
A letter scam in Nigeria is a scheme in which a sender offers someone a commission - usually via email - for helping them transfer a large amount of money.
Racketeering is the acquisition of a business through illegal activities, the conduct of a business with illegal income, or the use of a business to commit illegal activities.