Consumer watchdog issues warning on pyramid scheme circulating on social media
The consumer watchdog is warning young people not to engage with a new pyramid scheme that is circulating on social media channels in Ireland which is currently under investigation.
It comes as several callers contacted the Neil Prendeville Show about the operation of a Flower Leaf pyramid scheme that is running in Cork and appears to be targetting young people and inviting them to take part
Listeners have reported that they were encouraged to make an initial investment of 150 Euro and then recruit others to do the same in order to reach the “gold level”.
The Competition and Consumer Protection Commission says pyramid schemes are illegal and will inevitably collapse once the supply of potential investors runs out leading to the majority of those involved losing their money.
Speaking on the Neil Prendeville Show on Cork’s RedFM Shannon says she got involved in the scheme but really didn’t understand how it worked.
“I paid it by PayPal to a complete stranger, which was very stupid.
“After that I was added to a group chat, and I was asking if there was an app or what was going on, I didn’t really understand it.
“Then the person that was on gold, they left and they had everybody’s money.
“My buddy said “you have to sell the rest of the petals to go up”, but if we do that then other people are going to be left without their money.
“I tried to contact the guy who I gave the money to but he was after blocking me on social media. So I got my friend to contact him who wasn’t involved in this at all.
“She told him that she was a law student and that all his information was on PayPal, and he sent the money straight back.
“We were lucky, because a lot of people aren’t getting their money back.”