pyramid scheme

[ pir-uh-mid skeem ]

noun

1. any moneymaking scheme, usually illicit, in which each participating investor recruits others and then collects from what those invest, so that an ever-increasing number of participants generate more and more profit for those who recruited them:

   She invited me to talk about a new "business opportunity," and ended up trying aggressively to hook me into a pyramid scheme.

Word History and Origins

Origin of pyramid scheme¹

First recorded in 1945–50

Example Sentences

The problem is that defined pensions are a bit of a pyramid scheme: New workers need to constantly enter and contribute to support current retirees.

From Salon

Mr Singh said they began to realise the agents operated like a pyramid scheme.

From BBC

A classic example would be people in a pyramid scheme targeting fellow members of their church.

From Salon

It was a pyramid scheme in disguise, and more.

From Los Angeles Times

Some border towns in Southeast Asia have emerged as the centre of cyber scam operations including fake romance ploys, illegal casinos and investment pyramid schemes.

From Reuters