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Pyramid Schemes Prevalent in the Caribbean

Introduction

Pyramid schemes have become a significant issue in the Caribbean, often masquerading as sou-sou plans or blessing circles. These schemes typically involve a small group of initial participants who contribute money with promises of higher returns later on.

How Pyramid Schemes Work

• Typically involve a small group of initial participants who contribute money
• Promises of higher returns later on
• Schemes often expand to include many more participants, increasing the risk of default and fraud

Vulnerable Communities

Experts note that church communities are particularly vulnerable to these schemes due to their emphasis on faith and receiving blessings. Victims are often promised unusually high returns, such as $100 for a $20 investment, with the promise of getting money back if they contribute early.

Traps of Pyramid Schemes

Once people join these schemes, they can become trapped and find it difficult to leave. One participant reported that their initial circle had 8 members but eventually involved over 500 people.

Expert Insights

Experts warn that pyramid schemes frequently come across as “too good to be true” and prey on people’s susceptibility to the concept of God multiplying blessings.

• “The people who go in early get money, but then they disappear.”
• “Once you get in it, you get sucked in.”

Conclusion

Pyramid schemes are a significant issue in the Caribbean, often targeting vulnerable communities with promises of unusually high returns. Experts warn that these schemes can be difficult to escape once participants become trapped.