Gifting Clubs - Unwrapping The Scam
You're at your friends house for coffee or receive an email from an acquaintance. They are really excited about this new club they have joined and have to tell you about it. It will change your life. They explain it's a "gifting" club. You put in money, often between $500.00 and $2000.00, and the money is used to help women. Then after, you gain back up to $40,000.00 for your "gift". The friend assures you it is completely legal, after all the money is a gift, not an investment. Wrong.
Gifting clubs are not legal. They are pyramid schemes. These "clubs" are bound to fall at some point and leave many people at the bottom out of thousands of hard earned dollars. Don't be fooled by the term "gift" making it different than a pyramid scheme. A gift is given with no expectation of getting anything in return. In these clubs, gifts are given with high expectations of returned money plus some. The term "gift" will not make the scheme legal or legitimate.
Often clubs operate within social circles. The people who know each other well. They trust each other. Some of the people in this type of club do not know that they are party to an illegal pyramid scheme. When they get others involved, they honestly believe it is a good opportunity to help people and make a substantial amount of money as well. They may even tell you that it is condoned by the authorities. It, of course, is not condoned by authorities. Anyone participating in a gifting club scheme may be charged or prosecuted for their part in the scam.
The people involved that do know it is illegal use justifications to make them feel it is okay. They think that if it keeps going, a lot of people will make money and prosper. Like a chain letter, they put responsibility on the next one in line to recruit their own members to perpetuate the incoming money. Like all chains and pyramids, there is always a point when people stop joining in. Then all but the top of the pyramid lose their money.
So if you hear of a gifting club, often called names such as "Circle of Friends", "Women For Women" or "Helping Hands Club", remember it is illegal. The only way it will change your life is by adding a criminal record to your name.
Gifting clubs are not legal. They are pyramid schemes. These "clubs" are bound to fall at some point and leave many people at the bottom out of thousands of hard earned dollars. Don't be fooled by the term "gift" making it different than a pyramid scheme. A gift is given with no expectation of getting anything in return. In these clubs, gifts are given with high expectations of returned money plus some. The term "gift" will not make the scheme legal or legitimate.
Often clubs operate within social circles. The people who know each other well. They trust each other. Some of the people in this type of club do not know that they are party to an illegal pyramid scheme. When they get others involved, they honestly believe it is a good opportunity to help people and make a substantial amount of money as well. They may even tell you that it is condoned by the authorities. It, of course, is not condoned by authorities. Anyone participating in a gifting club scheme may be charged or prosecuted for their part in the scam.
The people involved that do know it is illegal use justifications to make them feel it is okay. They think that if it keeps going, a lot of people will make money and prosper. Like a chain letter, they put responsibility on the next one in line to recruit their own members to perpetuate the incoming money. Like all chains and pyramids, there is always a point when people stop joining in. Then all but the top of the pyramid lose their money.
So if you hear of a gifting club, often called names such as "Circle of Friends", "Women For Women" or "Helping Hands Club", remember it is illegal. The only way it will change your life is by adding a criminal record to your name.
posted by Brenda M | 8:56 AM
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