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scam alert Warning issued for social media users over suspected pyramid scam

Students and younger people are being targeted, with the scheme using the image of a flower, and may refer to flowers or petals.

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File photo of a woman using a laptop.

File photo of a woman using a laptop.

File photo of a woman using a laptop.

THE consumer protection agency has warned people not to engage with a potential pyramid scheme that is circulating on social media.

The Competition and Consumer Protection Commission (CCPC) said it has been contacted by consumers who have been invited to take part in what they suspect is a pyramid scheme.

Consumers reported they were encouraged to make an initial investment of €150 and then recruit others to invest.

Students and younger people are being targeted, with the scheme using the image of a flower, and may refer to flowers or petals.

They were told that once they recruited more people they would move to the next tier of the model.

This supposedly continues until the participant reaches the centre of the model and makes a return on their investment, the CCPC said.

Pyramid schemes work by offering individuals the opportunity to buy into a scheme.

This money goes to those above the individual in the pyramid.

Participants can recoup their original investments and qualify for a payout by recruiting new members who join below them.

"As is the case in all pyramid schemes, inevitably the supply of potential investors runs out and the pyramid scheme collapses, leading to the majority of those involved losing their money," the CCPC said.

Pyramid schemes are illegal and those who knowingly participate in them are liable for prosecution, the consumer body said.

Anyone approached to join any kind of pyramid promotional scheme should contact the CCPC immediately through their helpline on 01 402 5555 or by visiting ccpc.ie.


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