Pyramid schemes and chain letters

1. Disregard letters and delete all email promoting get-rich-quick financial schemes, chain letters or requests for cash to be sent through the mail.
2. Some pyramid schemes are marketed as business opportunities. Refuse to commit to anything at high-pressure meetings or seminars, and seek independent legal advice.
3. Be aware that some pyramid schemes are marketed on the Internet – this does not make participants immune to Australian laws.
4. Check with WA ScamNet’s listings, Consumer Protection, ASIC and ACCC to see if the scheme has been named. 
5. If the scheme contains names of Australian participants forward it to WA ScamNet so we can take action against them.

David Rhodes chain letter

1. If you have received a David Rhodes chain letter or one of its variations send it to us. The letter contains details of participants, which can be acted upon.
2. If the participant is a Western Australian, Consumer Protection will investigate to ensure that they cease their involvement in the scheme. Details of consumers living in the Eastern states will be forwarded to our counterparts for action.
3. In two years, Consumer Protection has issued formal warnings to more than 2,500 Western Australian participants and has instigated action against those that have continued to participate.
4. Promoters who continue to participate in illegal pyramid schemes risk prosecution. Individuals face fines of up to $20,000 and companies up to $100,000.