15 financial scams you should know

2) Matrix schemes

Matrix schemes use the same fraudulent, unsustainable system as a pyramid; here, the participants pay to join a waiting list for a desirable product, which only a fraction of them can ever receive. Since matrix schemes follow the same laws of geometric progression as pyramids, they are subsequently doomed to collapse.

Such schemes operate as a queue, where the person at the head of the queue receives an item such as a television, games console, digital camcorder, etc. when a certain number of new people join the end of the queue.