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The Better Business Bureau is warning people about a new scam in B.C. targeting women.
It’s called a gifting circle.
Several women in the province have contacted the BBB about concerns of being invited to these events by their friends. These events often go by the names of “Women’s Financial Circle,” “Women’s Financial Collective” or “Women’s Wisdom Circle”.
No matter the name, the BBB said it’s a scam.
The scam is a classic pyramid scheme that is designed to lure women into investing five thousand dollars with the promise of a $40,000 payout.
“It may take a couple of wine parties or two to entice women to part with their money,” said Evan Kelly, Senior Communications Advisor for BBB serving Mainland BC.
“After all, a friend asked you to join, it couldn’t possibly be a scam, right? The buy-in is cost prohibitive to many, so those in a more affluent demographic are often the targets of these schemes. Like many effective scams, people simply believe what they are getting into is legit or meaningful.”
The scam may tell the women the money will help women in need or a family in a troubled part of the world.
“Really you’re just giving your money to the person at the top of the pyramid as you recruit others so the base of the pyramid stays stable. Once the bottom level is filled with new recruits, another woman at the top gets a 40 thousand payout, leaves the group and the cycle continues until it falls apart,” Kelly said.
Another red flag with this scam is that there are no written agreements or contacts and women don’t know the other women involved beyond the person that invited you.
If you have any concerns, visit the BBB website.
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