Apparently, this WEW scheme originated from the IOW and is spreading fast! Such schemes resurface every few years under different names (read swashplates post and the links provided) and lure people into believing that they will make X times the amount they put into it!
Taken from the BBC news - Business website.
… Thousands took part
The local Trading Standards office estimates thousands of people took part, with the office having taken over a hundred calls, mostly from people who claimed to be friends or relatives of those who had got involved.
"I had a great deal of difficulty explaining to people why eventually this doesn't work. It is a case of wishful thinking really taking over from critical analysis. When they started up, there were payouts, there were people receiving £24,000. If you are gullible, that is proof to you that the schemes work," Stone said.
One week the NatWest had so many withdrawals of £3,000 that it was concerned its branches would run out of money.
But, like all pyramid schemes, it was doomed to fail ultimately, because - very quickly - you run out of people to get new money from.
.... Legal minefield
It is unclear what action can be taken as the scheme doing the rounds on the Isle of Wight means it is classified as a pyramid scheme or chain letter, rather than pyramid selling.
The latter involves sale of a product and is governed by trading regulations. The Isle of Wight scheme falls outside of the trading regulations as there is no product sale involved.
However, chain letters inviting participants to send money are probably illegal under the Lotteries and Amusements Act of 1974...
Ok, so this particular scheme
is aimed at women and it is obvious how it has managed to enter the airline industry and particularly amongst Cabin Crew!! (-just to clear this point up I’m talking about the ‘sister-hood’ attitude not people’s mentality-).
For those considering entering the scheme. please please, take a step back and think
logically:
a. Where all this money you will supposedly ‘earn’ is coming from. i.e. all your friends and family that
YOU are urging to join!!!!!!!
b. What happens if you are stuck in the pyramid when it collapses (because it will eventually collapse).
c. Although you might have heard of people that came out of these schemes with large amounts of cash think of the people that are too embarrassed to admit that they have lost their money (Or they just want to forget about it)!
Even thought I disagree with the language used by
Capt PPRuNe about his colleague, the fact still remains that such
Get Rich Quick schemes, WEW pyramids or chain letters (whatever you wish to call them) are ripping thousands of people off!!!
..Take Care.
[ 10 July 2001: Message edited by: Arhedis_Varkenjaab ]