Illegal pyramid schemes are on the rise, particularly in the form of innocuous-sounding blessing or gifting circles that prey on people's altruism, according to the Washington Post. People are asked to send someone money and to recruit others to do the same, and they are told that, should they do so, they will receive payments much higher than their original investment, a classic feature of predatory pyramid schemes.

Unlike other pyramid schemes, which take the guise of get-rich-quick plans, however, this form cloaks itself in the language of charity and friendship. The Post said promoters of this scheme are specifically targeting Black church communities, telling them that their money will help those who have recently lose their jobs due to the pandemic. The individual schemes are usually small, roping in about 15 people along four tiers: one at the top or center, two on a second level, four on the third, and eight at the bottom. As in all pyramid schemes (and society in general), it is those on the bottom who wind up being victimized the most.

However, even those who make money can be in for a nasty surprise: taxes. The Post said that many of these schemes falsely tell participants that, once certain thresholds are reached, money made through the scheme is counted as a gift and therefore not taxable, when this is not the case at all.