There is a real risk that a pyramid operation will be closed down by the officials and the participants subject to fines and possible arrest. Pyramid promoters are masters of group psychology. At recruiting meetings they create a frenzied, enthusiastic atmosphere where group pressure and promises of easy money play upon people's greed and fear of missing a good deal. Thoughtful consideration and questioning are discouraged. It is difficult to resist this kind of appeal unless you recognize that the scheme is rigged against you.
Some pyramid promoters try to make their schemes look like multilevel marketing methods.
Multilevel marketing is a lawful and legitimate business method which uses a network of independent distributors to sell consumer products. To look like a multilevel marketing company, a pyramid scheme takes on a line of products and claims to be in the business of selling them to consumers. However, little or no effort is made to actually market the products. Instead, money is made in typical pyramid fashion, from recruiting. New distributors are pushed to purchase large and costly amounts of inventory when they sign up.