Is cash giving a scam?

Answer by  elb (1105)

Cash gifting clubs are both a scam and illegal. You send money to the chief, then solicit others participate, believing you will become chief. The Federal Trade Commission has determined that this is a pyramid scheme: the originator probably gets money, later participants don't. All such pyramid schemes are illegal.

Answer by  patti (29325)

Any arrangement that offers considerable rewards for doing virtually nothing is either illegal or untrue. It is always a good policy to remember what our mothers told us: If it's too good to be true, it probably isn't.

Answer by  monkeyz (3150)

Not necessarily, but it certainly can be. If you send cash for a good or service which you never receive, it would be very difficult to get your money back. If you use checks or credit cards, there is at least something you can do.

Answer by  tamarawilhite (17883)

If you are referring to a gift club, in which new members give senior members money and members get money once they bring in new recruits? Then yes, it is a scam called a Ponzi scheme. You get no money unless you bring in new members, and most members get little not nothing. These scams are also ILLEGAL.