Former pyramid scheme victim now helps protect others

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China has launched an ambitious three-month campaign to eradicate illegal, predatory pyramid schemes. In the trenches with authorities are volunteers across the country.

The coastal city of Qinhuangdao in northern China’s Hebei Province is a popular destination for holidaymakers. But it’s also become a hive for people looking for a quick buck.

Every day, outsiders are taken to the area’s landmarks, and enticed with made-up stories about national projects that would guarantee high returns on their investments. / CGTN Photo

Wang Wenbing has been campaigning against pyramid schemes for five years. He says that pyramid schemes in Qinhuangdao has spread from the northern part to the southern part of the city.

Wang: Pyramid schemes can easily twist people’s values and beliefs

Wang was once a victim himself, being trapped in an illegal scheme for three years in southern China. During that time, he managed to bring in nearly a hundred people, most of them family and friends.

Wang believes that the experience can easily twist people’s values and beliefs, and tarnish reputations as well. There are many who dare not go back home and have no choice but to stay in the illegal business.

Pyramid scheme gangs in Qinhuangdao combine features of both the northern sect and the southern one. It becomes more perplexing for outsiders and increases difficulties of work for volunteers. / CGTN Photo

Only around 100 volunteers in China fighting pyramid schemes

It’s estimated that about 30 million people in China have been victims of pyramid schemes. As of today, there are just around a hundred volunteers working with authorities to fight the practice. Since most scammers update their tactics, it’s becoming even more difficult for outsiders to see the red flags.

Wang says those who usually get involved in pyramid selling are people who refuse to live normal lives. /CGTN Photo

Wang Wenbing warns of three ways to identify pyramid scheme traps. The first sign is if you are required to pay money for membership or buy a certain type of product. Second, if you are forced to bring more people in. Lastly, if you are placed in a pyramid-like hierarchy to continue the chains of interests.

China has no officially registered volunteer association to help fight against pyramid selling. Wang says, due to lack of income, he may quit in the near future. He believes the fight will never end because the real enemy is human greed.