RESIDENTS in Carmarthenshire, Ceredigion and Pembrokeshire were the least affected by pyramid scheme scams, according to new research.

Following reports that Elon Musk asked a judge to throw out a $258 billion lawsuit that accused him of running a pyramid scheme, www.scams.info looked into which regions have been affected by pyramid scheme scams.

The research found that Dyfed-Powys Police Force area had the least amount of pyramid scheme scams, with just two reports per 100,000 people, a stark contrast to Gwent which had 28.36 reports of pyramid scheme scams in 2022 per 100,000 people – the most in England and Wales.

The results were compiled from the National Fraud Insurance Bureau.

A victim of a pyramid scheme scam – who wished to remain anonymous – told of their story to raise awareness.

The job was advertised as a standard business marketing role which would provide training in sales and marketing, lead to travel around the UK, trained leadership roles and bonuses and rewards.

The individual said: “The recruitment process was pretty straightforward, I had a quick Zoom call initially with a group of people and then a private conversation.

"The in-person interview involved travelling to the office and knocking on doors for hours before the job was offered on the spot (red flag!).”

The individual would spend every day including Saturdays knocking on doors between 10am and 8pm.

“The culture was don’t talk about things that aren’t positive, if you aren’t surrounding yourself with people better than you, you’re wasting your time," he said.

“I was overworked, on cold streets until late at night when it was dark and couldn’t complain. I would have my manager ring me during the day if I wasn’t making sales, shouting at me, and asking why I wasn’t making any sales.

“I was initially told I was going to have my travel paid for, but this never happened. I was also promised a base salary when I joined, which never materialised.

"I was underpaid from the sales that went through. I spent three months fighting to get what I was owed – around £2,000 by my own calculations although this was refuted by them.”

The victim ended up in hospital after having chest pains while working and was told they were stressed, exhausted and had lost more than a stone in weight.

“My biggest advice is to leave. There is no shame, no guilt, you just have to do what is right for you – and you shouldn’t be made to feel guilty about it – there are always better jobs out there.

“Look out for red flags, and just know that there are positive, great companies to work for out there that don’t take advantage of you.”

Nicholas Crouch, scams expert at Scams.info gives these tips to spot pyramid schemes:

  • Setting unrealistic expectations: “Possibly the biggest red flag for pyramid schemes is the hue promises made by ‘employees’ to entice people. These typically come in the form of flash cars provided by the scheme, holiday homes, the idea of being your own boss and the freedom to retire early thanks to the scheme. If it sounds too good to be true, it probably is.”
  • If you are expected to pay large sums before employment: “New recruits can be expected to pay extortionate fees for onboarding, such as mandatory training courses, equipment needed to do the job and company events – often before starting the job. The constant reiteration of money is a massive tell that the pyramid scheme is a scam.”
  • The products sold are overpriced and of poor quality: “The products pyramid scheme scammers are trying to get you to sell are often vastly overpriced, of poor quality and new recruits are often discouraged from asking about the products they are expected to sell. Just by shopping around you’ll find that better quality products are already on the market and sold for more reasonable prices.”

If you think you have been scammed by a pyramid scheme, contact your bank followed by Action Fraud or the police to report details of the scam.