pyramid scheme

/ˌpɪrəˈmɪd skim/

Other forms: pyramid schemes

Definitions of pyramid scheme

1. noun

   a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in
   type of:

   scheme, strategy

   an elaborate and systematic plan of action