How Gifting Scams Work

Essentially, these scams all run on the same type of blueprint. The premise behind gifting scams looks like this:

You are recruited by person A into a gifting program. To join in on the “opportunity”, you must make an “investment” of X amount of dollars.

That money will then either enter a collection pot or be divvied up along the vertical chain of members – it depends upon how the scam is structured.

Typically, if the money goes into a collection pot, it will accumulate until it reaches dollar amount Y. At this point, the money is awarded to the person seated at the the top of the “vertical structure” (pyramid). In the very first stages of development, this would be the program's initiator.

Once that person receives his or her money, the collection is begun anew, and the people directly under that program's initiator become the new tops of separate “vertical structures.”

If the money is divvied up along the “vertical structure,” then a portion of the new recruit's investment is given to the existing member linked directly above the new recruit.

Variations of the above two methods do exist, and the only limit to other possible payment distribution methods is the scammer's imagination.

Whatever the payment method may be, a new recruit qualifies for receiving payment by moving up the “vertical structure” and recruiting new members.

When it comes to gifting groups, your best bet is to avoid them.

Return from How Gifting Scams Work to Gifting Scams Page