Warning: pyramid scheme

THE Bank of Namibia (BoN) is warning all Namibians that a new pyramid scheme is making the rounds.

Called ‘Millionaires List’, the scheme promises participants that they will become millionaires within three months.
After carrying out its preliminary investigation, the Bank has declared the operations of ‘Millionaires List’ in Namibia as a pyramid scheme and hence illegal.
In order to join the ‘Millionaires List’, a person is expected to make an investment of N$150 by depositing N$50 into each of three bank accounts given, and to forward the e-mail to at least 200 names and addresses.
After doing this the scheme promises income will flow into the depositor’s bank account within 90 days.
The scheme involves three stages of earning capacities, depending on the number of e-mails sent and the number of responses to them.
According to the scheme, N$2 000 can be earned in stage one, N$80 000 in stage two, and N$3 200 000 in stage three.
The BoN defines pyramid schemes as illegal money-making ventures in which individuals at the top of the pyramid recruit participants who are offered the promise of money if they successfully bring in others to join the pyramid.
A typical pyramid scheme would focus on the exchange of money and recruitment.
Usually, no legitimate product is being sold, hence no underlying commodities or services are involved in the transaction.
As a result, the scheme must fail when the recruitment drive reaches its peak as no actual value is created.