Pyramid schemes

One of the most famous scams which is now illegal in the UK. Famous due to the amount of people recruited and who have lost large sums of money. The basic premise is that you are joining a 'moneymaking' club. You will pay a joining fee (usually hundreds or thousands of pounds), and then will be pressured into recruiting new members for a similar amount. However, eventually it is impossible for the money to filter further down the pyramid; those at the top make alot of money, at the expense of those at the bottom. The only way it could work is if there was an endless supply of new members. Of course, there becomes a saturation point where there are no new members and this is when the collapse occurs.