Attorney General Dana Nessel is sending a word of caution to Michiganders about illegal gifting “schemes”. She says they’re often disguised as harmless gift exchanges or empowering social groups. The AG’s office says while genuine gifting circles foster community and resource-sharing without monetary exchange, some gifting circles are illegal pyramid schemes that rely on recruitment and false promises of financial gain.
Attorney General Nessel says, “Gifting schemes frequently pose as acts of kindness or community support, but in practice, they take advantage of participants’ trust and leave most of them with significant losses,”.
Her office says common red flags of a gifting scheme include: An emphasis on recruiting new participants over selling goods or services, promises of high returns with minimal effort and a focus on cash or gift exchanges without contractual agreements.
The AG’s office say you can avoid falling prey to gifting by avoiding the sharing of personal information with strangers and be skeptical about promises of low-risk, high-return investments as well and when in doubt, consumers should report suspicious activity.
