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BBB: YouTube Acting as a Vector for Ponzi Schemes

April 15, 2009
by Jacqui Cheng
Associate Editor, Ars Technica

Jacqui Cheng

Just as Nigerian 419 scams have adapted to the Internet age, so have Ponzi schemes. Also known as pyramid schemes, these types of scams have flourished online–particularly on YouTube, where the Better Business Bureau says there are almost 23,000 (and growing) Ponzi scheme videos. Because of the apparent growth in this type of scam, the BBB last week put out a warning telling consumers to avoid the temptation, and to learn how to recognize the warning signs.

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