Feb 17 • 05:00 UTC 🇧🇷 Brazil G1 (PT)

'I Thought It Was Honest,' Says Man Who Lost R$ 15,000 in Financial Pyramid Scheme in SP

A Brazilian man lost R$ 15,000 to a suspected pyramid scheme run by a marketing company in São Paulo.

Cristiano Henrique Souza, a driver from Jaboticabal, São Paulo, reported losing R$ 15,000 due to investing in the BMB advertising company, which he suspected was involved in a financial pyramid scheme. Souza noted that he was drawn to the scheme partly because it had a physical office in his city, which gave him a sense of trust in the business. Unfortunately, when BMB shut down in 2025, many investors, including Souza, found themselves unable to recover their funds as the company vanished without a trace.

The characteristics of a pyramid scheme hinge on its unsustainable business model that relies on recruiting new members rather than selling actual products or services. According to experts, these schemes promise quick profits, enticing individuals to invest their money. However, as recruitment peters out, the scheme collapses, leaving participants with significant financial losses. Souza's experience reflects a common narrative among victims of such scams, where the allure of easy money blinds individuals to the inherent risks involved.

In his statement, Souza expressed regret for his naivety, admitting that he believed the enterprise was legitimate and trustworthy. His story serves as a cautionary tale and highlights the importance of vigilance and skepticism when presented with investment opportunities that appear too good to be true. As authorities crack down on pyramid schemes in Brazil, awareness and education about the signs of fraud become crucial in preventing financial exploitation. Both individuals and regulators need to remain vigilant to combat the rising tide of such schemes in local communities.

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