
70 | Chapter 8
Pyramidal Marketing
Pyramidal marketing, though not necessarily
used in all such schemes, remains the most pop-
ular strategy for fraudulent companies to reach
large number of gullible investors in a short
time. Some such schemes, which do not use py-
ramidal marketing, operate through commission
agents who are local unemployed youth. They
are given hefty commissions by the promoters
of such schemes. They mobilise thousands of
crores from small towns by luring investors with
high rates of return.
Use of the Internet
The Internet is being extensively used by fraudu-
lent companies, some of which are headquartered
abroad. Many of these ...