The pyramid scheme

What is it? You have probably come across it one way or another. You’ll never see the term ‘pyramid scheme’ anywhere of course. The concept is simple; you pay up a number of people (one each layer), and then you wait for your turn to be paid as your name climbs up the layer. Of course, you’re suppose to ‘sell the idea’ to other people and so on and so forth in order to maximize the number of people who will be paying you at your turn. I’m sure it has been around for quite some time, but the first time I came across it was during primary school (which was about 15 year ago), believe or not! At that time the modus operandi was snail mail asking you to mail one ringgit notes to recipients. Nowadays, more canggih methods are employed; emails and websites are ciculated, online transactions or banking-in are preferred. I saw one describing the scheme as ‘an online business’. But one different version was some photostate copies urging readers to join in order to help the ummah. Complete with dalil Qur’an and hadith on how we are encouraged to help each other. Annoyed ada, nak gelak pun ada.

Why bring it up now? Someone had placed the copies of advertisement/instructions at the office surau rack, meant for the likes of zakat and Tabung Haji forms. Amboih! Those were removed of course, and I took care not to peek at the name listed, lest I’d know who put it there.

Does it really work? Well, the ‘investment’ required is usually quite small, for example RM2 each for 5 people equals RM10 in total. I think that a lot of people would be willing to take this risk because the potential loss is quite small compared to the potential income. And I believe it’s not difficult to ‘break even’, ie to receive at least RM10 back. But to reach the huge number of RM200k or RM500k as advertised? Now that’s pretty tall. Of course you can show the maths: 10 people at each 5 layers means ten to the power of five equals one hundred thousand. Multiplied by RM2 each, yes you can get RM200k. But I think it’s not possible, or rather - it is possible but very improbable, to get one hundred thousand peope to buy-in. Especially if this scheme has been around for ages and most people who are willing to try had already done so.

Is it legal from the Islamic point of view? I’m unfortunately far from qualified to answer this question. I can only ask more questions. But the clear thing is, there is no product or service being transacted. It’s more like hoping for people to ‘donate’ their money to you. So to me, it’s very suspicious. Wallahu'a'lam.