"A pyramid scheme is basically any money-generating scheme that works by the people on the top of the pyramid signing up 'investors' who in turn sign up more ‘investors’ and so on," Martyn James at Resolver.co.uk explained. (Image: Spaceboyjosh / Wikimedia Commons)In a pyramid scheme, the money is not generally invested anywhere. The red flags(Image: Getty Images/Cultura RF)If you've been approached about an investment scheme out of the blue, it's likely that it's either suspicious or some form of pyramid scheme - especially if it’s promising quick returns. "The only people who usually profit from a pyramid scheme are the ones who created them. According to the Direct Selling Association (DSA), which represents the industry, the average amount earned is £372 a month.

Source: Daily Mirror October 20, 2020 14:07 UTC