Montanans warned about pyramid scheme on Facebook

csimt In The News

By: MTN News

Matt Rosendale, the state Commissioner of Securities & Insurance and Montana State Auditor, is warning Montanans to watch out for a pyramid scheme making the rounds on Facebook and Facebook Messenger.

The scheme is called the “Friendsgiving Network” on Facebook and involves recruiting friends to buy into the bottom of a pyramid for $100.

Once the pyramid is filled up with new participants, the person at the top takes $800. The two people at the second tier of the pyramid each become the top of two new pyramids, and the process repeats. It is primarily operating within private group chats on the Facebook Messenger app…

“Pyramid schemes like these are against the law because they always fail once the pool of new recruits runs out. People at the top of the pyramids make money, but the newest participants lose everything they’ve put into the pyramid,” Rosendale said in a press release.

“Montanans should not participate in these type of schemes, and remember: if an opportunity to make money sounds too good to be true, it probably is,” he added.

Read more at KRTV