The Prince George RCMP are warning the public of a pyramid scheme that is going around the city.

The Gifting Pyramid Scheme, also referred to as a Gifting Circle, targets groups who are convinced to recruit friends and acquaintances.

New members must pay their recruiter a $5,000 “gift” to join. Each member is then expected to recruit eight new people so everyone would eventually end up with $40,000.

Recruiters attempt to legitimize the buy-in pyramid schemes by insisting that it is not taxable or illegal because it is a gift. Victims involved in the scheme often do not realize they are doing anything illegal.

This illegal pyramid scheme has been reported in a number of Western Canadian cities and in July of this year, two women in Maple Ridge were formally charged for running a Gifting Pyramid Scheme.

For more information on common frauds visit the Canadian Anti-Fraud Centre’s website.