pyramid scheme

[pir-uh-mid skeem]

noun

1. 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.

Word History and Origins

Origin of pyramid scheme¹

First recorded in 1945–50

Example Sentences

Such is their desperation they don’t quite allow themselves to see this is a fairly basic pyramid scheme that depends on fresh blood — and their bank accounts — to keep the Wheel turning.

From Los Angeles Times

I believe the American dream has become a pyramid scheme.

From Salon

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

From Salon

The problem is that defined pensions are a bit of a pyramid scheme: New workers need to constantly enter and contribute to support current retirees.

From Salon

Mr Singh said they began to realise the agents operated like a pyramid scheme.

From BBC