In China, cheap knives and questionable nutritional supplements are the least of regulators’ worries when it comes to pyramid schemes. Crafty scammers have bilked unsuspecting Chinese out of billions of dollars, draining the meager savings accounts of recent college graduates, migrant workers, and pensioners.
One pyramid scheme alone defrauded 900,000 people of $7.6 billion. But that’s only the tip of the iceberg. More than 40 million people have been ensnared by these sham investments, according to the China Anti-Pyramid Selling Association. Fearing financial instability and social unrest, the central government announced a sweeping nation-wide crackdown on organized crime, naming pyramid schemes as a top priority alongside drugs, gambling, and human-trafficking.
One pyramid scheme alone defrauded 900,000 people of $7.6 billion. But that’s only the tip of the iceberg. More than 40 million people have been ensnared by these sham investments, according to the China Anti-Pyramid Selling Association. Fearing financial instability and social unrest, the central government announced a sweeping nation-wide crackdown on organized crime, naming pyramid schemes as a top priority alongside drugs, gambling, and human-trafficking.
