Be Careful About Joining a “Gifting Cloud” or “Pay It Forward” Group - It's A Pyramid Scheme!

A few months ago, I met a really nice lady at a business function. As the hours went by, we talked more and more and got comfortable with each other enough to share our stories. As we were about to leave the function, she asked me to join her and a group of ladies the following week at a local restaurant.

She said it was a “Pay It Forward Gifting Group”, and I could have a glass of wine and see what it was all about. She said that I could give a little money to help people and get a lot back!

I was intrigued! Friends, wine and riches are a potent combination.

Did I take the bait? No.

But dozens of ladies in my town did.

And the people recruiting them, like my acquaintance, didn’t know there was anything wrong with what they were doing.

They were supposed to ask friends and family to attend the group, so more people could be helped by the money that was collected in what was basically a pyramid scheme.

They were told that this type of thing was illegal in The United States, but not in Canada.

A local newspaper reporter attended a few of the sessions, and the group leader knew she was a reporter and told her it was legal.

Women are so giving and trusting and they told them they were helping other women escape abusive situations, and it was a “gifting cloud” or “pay it forward” group, that helped people who needed it, and as money accumulated, they would be paid back more money than they gave.

But in the past, such organizations have run off with people’s money, and the people are too embarrassed to report it to police. Why? Because they ask them why they gave a large amount of money to someone they didn’t know.

I know many of these ladies personally and they are good people. They were told that they were helping people and that they would also benefit, and would be asked for more money in the future.. Some gave $1,000 to get $8,000 back within a few months, by recruiting two more people to the group, and some gave $5,000 to get $40,000. Now they are facing fines and possibly jail time!

A warning if you hear about this type of group in your area. Be careful!

photos - Pixabay