Pyramid saving scheme, conceptual image

Pyramid saving scheme, conceptual image

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Credit: SMETEK/SCIENCE PHOTO LIBRARY

Caption: Pyramid saving system. Conceptual image of an inverted pyramid of people, representing the participants in a pyramid saving scheme. In this business model, income is generated solely by requiring each new participant to recruit new members who pay a joining fee. Eventually, the scheme collapses as the model becomes unsustainable, and those at the base of the pyramid lose their money. Pyramid saving schemes are illegal in many countries.

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