Women’s Financial Circle Scam

Falling Victim

The pharaohs of ancient Egypt created the first pyramid schemes. But since then these schemes have evolved to become more elaborate. The most recent example has taken shape in the form of a Gifting Circle, which specifically targets affluent women. According to the Better Business Bureau, a consumer watchdog, the scam works by inviting women to join wine parties and luring them in with the promise of a $40,000 payout if they invest just $5,000 themselves and recruit their friends. Organizers at the party claim to create “abundance and spiritual healing” for anyone who signs up.

16-08-bbb-gifting-circle-scam-scheme

Personally I thought spirituality was about self development and discovering meaning from within. I didn’t realize it could be bought with money, lol. But I am certainly no expert on the subject.

Evan Kelly, an advisor for BBB Mainland B.C., says that since $5,000 is somewhat prohibitive, this scheme tends to go after wealthy women and their circle of friends. “After all, a friend asked you to join. It couldn’t possibly be a scam, right?” Kelly says. But eventually the pyramid collapses under its own weight and members on the bottom lose thousands.

So if you ever get invited to a party that might be held under false pretense then enjoy yourself and drink responsibly. 🙂 But please DO NOT sign up for any programs they want you to join, especially if it involves recruiting more of your friends.

Here are some tips from the Better Business Bureau for avoiding potential scams such as this.

  • Do your own independent research and be skeptical.
  • If there’s no actual product or service being offered, question how it makes money.
  • Be careful of investments that promise low risk and high returns.

So the lesson here is simple: Money can’t always buy brains. However, brains will almost certainly make us more money.

 

__________________________________
Random Useless Fact:

A polar bear’s fur is not white. Each hair is a clear hollow tube. The bear looks white because of the way its hairs reflect the sunlight.

c58a5c1c4078bf561b8f008a16658e5e

 

Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

Subscribe
Notify of
guest
2 Comments
Inline Feedbacks
View all comments
Anon
Anon
08/22/2016 10:47 pm

Wonder how many wealthy foreigners are targets of these scams?

That online quiz has 3 math questions, 2 economic questions, and 1 finance question. It is not a personal finance quiz; no questions concerning income, budgeting, tax, et al. Considering how weak ‘Mericans are at math, it’s no surprise the national average is 3/6.