Pyramid schemes are doomed to fail because their success depends on the ability to recruit more and more investors. Since there are only a limited number of people in a given community, all pyramid schemes will ultimately collapse. The only people who make money are those few who are on the top of the pyramid.

What was the most successful pyramid scheme?

Bernard Madoff ran the largest Ponzi scheme in history, a $65 billion scam encompassing thousands of investors that was uncovered in 2008.

Is there a reward for reporting pyramid schemes?

Under the SEC Whistleblower Program, the SEC will issue awards to whistleblowers who provide original information, including information about Ponzi schemes, that leads to successful enforcement actions with total monetary sanctions in excess of $1 million.