Money making schemes that could seriously damage your pocket!

There are many different types of money-making scams which appear to be genuine and imply how easy it is to make lots of money. But money-making schemes that seem too good to be true usually are, and should be avoided.

Get rich quick schemes only work for the organiser, leaving others out of pocket.

Chain letter scams - usually ask you to send money, about £10, to the person at the top of a list of 6 people. You then add your details to the bottom of the list and send copies to around 200 randomly selected people.

If you are tempted to get involved in a chain letter scam you could enter into something that is likely to cost more in time, effort and money than you will earn from the scheme. Our advice is to rip it up and put it in the bin!

Money Gifting Schemes like 'Women Empowering Women'

'Women Empowering Women' has received a lot of adverse publicity over the past year; it works like a chain letter and only women can take part. Participants are asked to give £3,000 to a member of a network (usually a family member or friend). In return, the new "investor" may expect to receive multiples of that amount, up to £24,000, as they progress though the network hierarchy.

To be successful, the scheme relies on a constant flow of new "investors". However, the network eventually breaks down as the pool of new participants, with £3,000 to risk, dries up. When this happens those joining the scheme later stand a good chance of losing their original contribution, never mind any return.

Although you may have heard about people who claim to have made large amounts of money from schemes like this, there are thousands of unhappy people who joined the scheme and lost money.

If you become aware of a 'money-making' scheme that sounds too good to be true, operating in your area ...

tell your local Trading Standards Service and tell us - it may help us to stop them and protect other people.