This is the signature of a pyramid scheme operation. Are you being pressured to join? If you're experiencing high-pressure sales tactics to get involved with the opportunity, consider that a red flag.

Ponzi schemes often involve complex investment strategies that are difficult to understand. If you’re unable to get clear answers about how your money is being invested, it’s a warning sign.

Musk labeled Social Security as the ' biggest Ponzi scheme of all time, ' a statement that has drawn attention due to its stark comparison.

How do you spot a Ponzi scheme before it swallows your life savings? RECOMMENDED: FULL LIST: 58 illegal Ponzi scheme operators Nigerians should be aware of First off, what is a Ponzi scheme?

There are also pyramid schemes, which can look a lot like multi-level marketing, but are illegal. According to the Better Business Bureau, there are ways to spot the difference.