The Gifting Club Scam - Beware Of The Trap

Bookmark this page and share it with others! (Or press Ctrl/D on Firefox)

Gifting clubs are nothing more than an illegal pyramid scheme, no matter what they tell you. These clubs come in various forms, but it is all still an illegal pyramid scheme.

It starts when you get an invitation to an exclusive club of others who want to invest their money on each other. They lure you by telling you for a small entry fee, you can have access to this exclusive club. Your entry fee is paid to the ones above you who are your sponsors. If you want to make money, it will come from all those waiting to get in below you that you will sponsor.

You are lured in with the understanding that you are really doing this to make money. No matter how they pussyfoot around it, the only reason you are joining is in hopes that the people who join in later will give you a gift of money or their entry fee into the scheme. Do you actually believe people in the same boat as you are merely giving money away without realistically expecting money back? The very fact that you are paying money in order to get in line for other people's money makes it illegal.

There is no product involved, unlike traditional pyramid schemes. You are saying in public you are giving a gift to others out of the kindness of your heart. You are privately hoping others will gift you money out of the kindness of their heart.

Where this becomes problematic is the bottom always falls out. It is great if you get in early and leave before the bottom angry mob comes calling for blood. There just are not enough people in the world to sucker into one of these plans to assure everyone who participates actually gets the gift they hoped for when they signed up.

Return to the Scams section