However, the three deaths in July put a spotlight on more extreme tactics used by some organizations in China, where the schemes can raise large amounts of money. Warning that pyramid schemes have become “more rampant,” four Chinese government agencies responded last month by launching a three-month crackdown that targets misleading online job adverts designed to lure young people. Pyramid schemes in China were criminalized in 2005, but are still booming, with authorities investigating more than 2,800 cases last year, a 20 percent increase from 2015. Many pyramid schemes operate in cramped spaces where people eat together and sleep on the floor, said Li Xu (李旭), the founder of an organization that rescues people who become trapped. “Pyramid schemes in China target people who desire to change their life at a low cost,” he said.

Source: Taipei Times September 15, 2017 16:04 UTC