pyramid scheme

American

[pir-uh-mid skeem] / ˈpɪr ə mɪd ˌskim /

noun

any moneymaking scheme, usually illicit, in which each participating investor recruits others and then collects from what those invest, so that an ever-increasing number of participants generate more and more profit for those who recruited them.

She invited me to talk about a new "business opportunity," and ended up trying aggressively to hook me into a pyramid scheme.

Etymology

Origin of pyramid scheme

First recorded in 1945–50

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

pyramid scheme

De la Espriella also defended David Murcia, convicted of running a pyramid scheme that impoverished families across southern Colombia.

From The Wall Street Journal ● Jun. 2, 2026

In one case, WhatsApp worked with Meta and ChatGPT-developer OpenAI to disrupt scams linked to a Cambodian criminal group that offered cash for likes on social media posts to promote a fake rent-a-scooter pyramid scheme.

From BBC ● Aug. 5, 2025

And the industry wants to distance itself from multiple marketing, from a pyramid scheme.

From Salon ● May 21, 2025

It was a pyramid scheme in disguise, and more.

From Los Angeles Times ● Jan. 16, 2024

Intricate webs of village and family loyalties were tested to the limit in affairs such as TAT, the collapse of a savings bank in a pyramid scheme in which some top level officials were implicated.

From After the Rain : how the West lost the East by Vaknin, Samuel

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023