How To Spot Pyramid Schemes: A True Life Story!

If you have come across this post by mistake, and this is your first time hearing about pyramid schemes, read this story. However, before I tell you what happened, some readers might not know what pyramid scheme fraud means, so I will explain. 

A pyramid scam is a fake investment that is illegal. The company will invite you to invest, pay you gains and get you to ask other people to invest in the company. The downside is that they start paying the profits of higher investors with the funds deposited by low-level investors or newcomers. The pyramid finally collapses because when there are no new investors, there’s no way to pay members their benefits. After all, it was a fake company.

There are many fake cryptocurrency investment websites on the internet today. If you are not careful, you can become a victim of a cryptocurrency scam, and hackers can get into your bank account if it’s linked to your wallet. 

I met up with this guy who I found in the comment of a post about how to report a scam website. He was also a victim and was looking for websites with a comprehensive international scammer list to which he could report his problem for help.

“It began a little more than a year ago. I came across an advertisement with two well-known celebrities that said you could make more money than you could at a bank,” the victim explained. “I began with $250. Although I was aware of the existence of cryptocurrencies, I did not know how they operated.” 

The firm had its website, allocated a personal client manager, and had a solid return on the initial investment. All transactions were conducted over the phone, not online. He claimed that nothing seemed odd, and there were no ringing alarms in his head. “I received answers to every inquiry I posed, so nothing warned me that the path ahead would be challenging. 

Ironically, I kept a pretty thorough spreadsheet of all the transactions and trades from the beginning. I wasn’t scared at that point. I was utilizing money, but I could still get by without it.

The scammers sent him an invite to join the company’s “retirement division” after making consistent investments for a few months totaling by this point roughly £55,000. He claimed, “They were claiming fantastic statistics, and when I inquired about the tax, they said bitcoin is uncontrolled, and I was thinking, ‘I’m not sure, but they pulled you in. Then, on the 6th of June, he woke up to business as usual, only it would not happen like that for him. He tried logging in and entering his password, but nothing was working.

“At first, I thought I was using the wrong password,” he commented. Then, after many unsuccessful login attempts, he tried writing the admin. All the emails were bouncing back. 

He thought it could also be a network issue and decided to wait a few days before trying again. Finally, after a week of silence from the fake cryptocurrency investment website, he decides to go to the police for help. But they couldn’t help him because he had been willingly trading with the website, and it would be harder to trace since it was a scam crypto investment website.

He ended up reporting the scam website on Report Scammed Bitcoin, a site with a complete local and international scammer list and where you could make a report about fraud. RSB facilitated the closing of the scam website after the report. They took up the investigation immediately and knew exactly what to do.

Before investing, it is crucial to know how the system works. Speaking with family members and experts in the investment space will help one avoid such scams. Ignorance makes you a more susceptible victim. For my friend, it was the first time he heard about the pyramid scheme and didn’t notice the signs early on in their transactions.

Here are Some ways to Identify such fake Cryptocurrency Investments

  1. Do your Research

Before you start investing, make sure that you carry out your research. Learn first what you can about the crypto investment market to understand how it works. You should also find out what you can about the company. Finally, check for online reviews on reliable review websites and social media, including Instagram, Tik Tok, Facebook, and international scammer list.

  1. They Do Not Sell Any Identifiable Goods or Services

Most of these fake websites only want you to invest but need to show you how your money turns into profit. Getting clear answers to your inquiries is usually a red flag, and you should check the website very well.

  1. Unusual Interest Amount

Another sign of a crypto scam is the interest they promise to make in a short time. If it sounds too good to be true, it probably is, and you should double-check. 

  1. Substandard Website

Their website will contain spelling errors and links that need fixing. You should carefully browse through the website to check for these signs.

  1. All they Want is Your Money

When the investment site only asks for your money without answering questions, they keep asking you to invest to beat a closing offer deadline and let you only withdraw small amounts, it might be a fraud.

  1. You can’t get your Funds Out of the Investment

You are now ready to withdraw your investment sum and spend it on something you were saving for in the future. But the company won’t let you withdraw your funds. Instead, they give one excuse after the next and continue to delay your withdrawal requests, you should check again to ensure you are not dealing with scammers.

If you have suffered any financial losses due to EmpireFXM, VeloCityTradeFX, BitFargo, Swapnex, or other similar companies, we urge you to report it to us immediately by filling out the form below. Your prompt action can help protect others from similar harm. Thank you for your cooperation.

File A Complaint Against Scam Brokers


There are many forms of Cryptocurrency Scams disguised as pyramid schemes. You should find out what you can about the kind of investment you are looking to pursue to avoid being a victim. The person I mentioned above could not do anything about it, but at least he found RSB, where you can report a scam website.

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