‘Pyramid Scheme’ scammers targeting stay-at-home mums on social media

Money’s tight for mums up and down the county – and earning extra isn’t always the easiest thing to do when you have children to take care of too.

Which is what makes this new scam so very dangerous – because it seems to offer just what’s needed. Flexible hours, good money and aimed at mums.

The problem is it looks an awful lot like a scam – a clever one too – and it seems to be turning mums against each other in the process.

This is what happened when they tried to pull me in as well.

How they found me and got in contact

Searching for new work, I was updating my LinkedIn profile so I was pleased when I got some views. One woman had looked at it a few times, so I thought there was no harm in connecting with her.

I was flattered when she left me an audio message. In it she raved about what an amazing profile I had and how she had a fantastic career opportunity for me.

“So I have an amazing opportunity I would love to share with you,” she gushed. “Your experience and knowledge of the world is absolutely incredible.

“I loved reading your profile and I think you could be absolutely amazing at the business that I run. If you are open-minded then I would love to have a chat with you and explain exactly what it is that I do.”

The ‘opportunity’

This would easily fit around my existing work, she said: “This is something that you can do completely flexibly around your journalism career and just as a really amazing additional extra income and that will enhance your skills, and help you really grow and personally develop yourself. If this is something you like the sound of, we can have a chat and start from there.”

I was excited. After all, when you spend a lot of your time wiping bottoms, it’s nice to be told you’re amazing.

I’m a busy mum to a toddler and it can be hard to find work that fits around playgroup pick-ups and childhood lurgies. And, I have received legitimate approaches before via social media.

What I found strange was there was no mention of the actual role. If you have a job vacancy you usually explain what it is.

But, as her profile suggested she had an education background, I thought it might be teaching, so I messaged her asking for more details.

They bamboozle you with sales patter

She sent me a link to an article by a Canadian manager of something called Arbonne.

It went on vaguely about what an amazing company it was, the great mentoring opportunities and how fantastic the products were, without ever mentioning them.

There were also videos of recruits gushing about the fantastic coaching they had received.

I started to get suspicious.

When people write things such as how “the key that ignited my passion was accepting success and welcoming it into my life” and include photos of consultants posing in white Mercedes-Benz SUVs (they have a leasing scheme for successful recruits) you know that something isn’t right.

Running a business involves hard graft and good luck – you don’t hit the big time simply by “welcoming it into your life”.

An internet search established it was a Californian multi-level marketing scheme based around vegan make-up.

The US Federal Trade Commission (FTC) investigated it after former consultants claimed it was a pyramid scheme.

While US authorities ruled that it was not, American internet message board users complain of being subjected to three-hour brainwashing sales pitches at make-up parties they have unwittingly agreed to attend and pressure to join up.

Ironically, the day my contact chose to target me was Safer Internet Day!

Stay-at-home mums targeted

Meanwhile, in the UK, Mumsnet posters report being pressurised by other mums selling the products to part with thousands of pounds to join and purchase stock and made to feel like a failure if they refuse.

Another tactic scammers use is to make mums feel that if they turn down the ‘opportunity’, they are failing their children.

One poster notes that another mother pressuring her into signing up implied that “anyone who has children and goes out to work doesn’t care enough about their kids and doesn’t get to see them grow up – unlike her who gets to ‘stay home with my baby’.”

Similarly, a friend of mine told me a contact of hers, concerned about returning to work after maternity leave, was told at a ‘pampering party’ a similar scheme was a “great way to earn money while still enabling her to be a stay-at-home parent”.

How to spot a pyramid scheme

So how do you decide whether that business scheme your friend recommends is a genuine opportunity or a pyramid scheme – illegal in the UK?

• They ask for cash upfront: Typically, you will be asked to part with a substantial amount of money in exchange for products that are either poor quality or worth a lot less than you are paying – this is because the extra cash is being paid to consultants further up the pyramid. For example, some people complain online that Arbonne make-up is overpriced and that the equivalent can be sourced more affordably elsewhere.

• You have to recruit others to make any money:  The only way to make any money is to recruit other consultants, for which you receive an incentive. This is why pyramid scheme members end up signing up friends and family or, in this case, trawling social media to find new ‘marks’. To be profitable, the scheme relies on an endless supply of new members parting with their cash, but in reality they become increasingly difficult to find and the profits dry up. Meanwhile, finances, friendships and sometimes even marriages can be ruined in the process.

• Scammers claim to be living a lavish lifestyle: To get you hooked, fraudsters will claim they are earning a fortune and that the company has sent them on an expensive holiday or given them the lease on a fancy car. A message board poster says that her “friend is flying high with this and says she is earning £1,000 a week! [She has] been selling it for a year and has been on the flash holiday, getting the car.”

Multi-level marketing or pyramid scheme?

Multi-level marketing schemes also involve layers of sales people and sell direct to consumers, so it can be difficult to distinguish between the two.

However, joining a legitimate direct-selling organisation should involve minimal start-up costs – the UK Direct Selling Association (DSA) suggests around £100 – and there should be the opportunity to return unsold stock. What’s more, profits should come from legitimate product sales, not recruitment fees.

“Pyramid schemes make their money from fees paid by new recruits or by loading inventory or training aids on them,” the DSA website explains.

“High entry costs are a tell-tale sign. A condition of DSA Membership is that members have a buy back policy… Think carefully about opportunities that encourage front-end loading, or buying large inventories of unreturnable products to reach levels for price or other gains.”

Beware of get-rich-quick schemes

“Be careful of any business that claims you can get rich by solely using their products or by recruiting new people into the business,” the DSA adds.

“You should believe in the products you will be selling. We would advise that you always select a company who is a Member of the UK DSA.”

I responded to my ‘offer’ by telling her I “definitely wasn’t interested”. She wrote back with one more attempt to hook me in, telling me she had thought the same until she had seen the light, and that if I had any friends who were interested instead to put them in touch!

“I totally understand, I thought that at first – being a teacher and having zero interest in products!” she gushed.  “But when I actually heard how the business works I was blown away, totally misunderstood it and started that day – that was 4 years ago.

“If you are open-minded and have a good work ethic it really is worth a further look, even if not for you it could be for someone you know.”

Yes, it was going so well that she was now trawling social media for new recruits, no doubt having alienated her friends and family members.

I did not reply and immediately disconnected with her in case she targeted my contacts too with her scam.

If it sounds too good to be true it usually is.

What to do if you have been targeted

Pyramid schemes are illegal in the UK. If you have been targeted, immediately break off contact with the fraudsters and alert your bank if you have passed on bank details.

You should also keep any written communications you’ve received from the pyramid scheme. It might help you give evidence to the authorities.

You can also contact your local Citizen’s Advice Bureau for advice and/or report them to Trading Standards or the police. You can also report it to Action Fraud.