You have probably heard about Multi-Level Marketing scams (MLM), but if not, this article will guide you of this fraud that makes it simple for you to become a victim of it. Cybercrime dangers are becoming more prevalent every day, thus it is crucial to educate yourself on the many methods fraudsters employ to steal your money. 

How do MLM scams work?

Consumers in a scam known as multi-level marketing act as distributors, which is when the fraud really begins. Have you ever been approached with a proposal to earn commission on sales? If the answer is yes, be aware that not all offers are genuine. MLM scams take place when consumers act as distributors and sell the items that the real distributors are selling. 

For example:A customer who poses as a distributor urges you to purchase their goods and sell them to others in order to earn commission. Furthermore, they will advise you to increase your distributorship (Multi Level Marketing) in order to receive commission, and they will advise you to make an initial financial investment. Simply put, the distributors made their distributors the consumers. You will later discover that a financial investment you made in an unknown firm was fake. 

How to avoid this scam?

• Beware of fake schemes offer even it is offered by your friend or relative.
• Verify the authenticity of Mulit Level Marketing Scheme. Some of the schemes like Ponzi scheme, Pyramid Scheme etc are illegal in India under the Direct Selling Guidlines, 2016 and th Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
• Do not pay money to unknown companies.
• Report the incident to the nearest Cyber Crime Police Station and National Cyber Crime Reporting Portal at http://cybercrime.gov.in/

Source: Click Here