$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
MLM schemes targeting immigrant communities
MLM companies target immigrant communities through cultural trust networks, church groups, and diaspora gatherings, exploiting language barriers and the desire for financial independence.
“pyramid scheme”
↓ 8%Key indicators
Usually targetsImmigrants
Often hitsRemote workers and job seekers
Common regionUnited States
Last updated2026-04-05
Estimated impact
$6.0K
median reported loss
Typical range$600 – $120K
Recovery rate~8%
Annual reports11,000
Scam breakdown
1
Recruiters target immigrant communities where trust networks are strong and financial literacy resources may be limited.
2
Presentations happen at community centers, churches, or family gatherings, making the pitch feel personal and safe.
3
Language barriers make it harder for participants to research the company or understand the compensation plan.
4
Social pressure within tight-knit communities makes it difficult to leave even when losing money.
What to do first
Research the company name in English — many MLM warning sites and FTC actions are only available in English.
Related terms
immigrant MLM targetingdiaspora MLM scamchurch MLM recruitmentcommunity MLM fraudPonzi and pyramid schemesIn-personStableImmigrantsNon-citizensFamiliesRemote workers and job seekersInvestors and tradersNonprofit and charity workersUnited StatesCanadaUnited Kingdomimmigrant MLM targetingdiaspora MLM scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Samantha, 36, a immigrants, encountered what appeared to be a legitimate ponzi and pyramid schemes situation while using In-person. Recruiters target immigrant communities where trust networks are strong and financial literacy resources may be limited.
Step 2
What happened next was calculated: Presentations happen at community centers, churches, or family gatherings, making the pitch feel personal and safe.
Step 3
The pressure escalated quickly: Language barriers make it harder for participants to research the company or understand the compensation plan.
Step 4
Then came the real trap: Social pressure within tight-knit communities makes it difficult to leave even when losing money.
The outcome
Samantha realized something was wrong when recruitment happens primarily through cultural or religious community gatherings. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research the company name in English — many MLM warning sites and FTC actions are only available in English. Samantha's experience shows why recruitment happens primarily through cultural or religious community gatherings and the pitch is delivered in the community's native language and leverages cultural trust are the clearest early warning signs.
How to identify it
- Recruitment happens primarily through cultural or religious community gatherings
- The pitch is delivered in the community's native language and leverages cultural trust
- Success stories feature members of the same community who may be early adopters, not typical participants
- There is social pressure to join because declining feels like rejecting the community
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
What to do now
- ✓Research the company name in English — many MLM warning sites and FTC actions are only available in English.
- ✓Ask a trusted advisor outside the recruiting community for a second opinion before joining.
- ✓Understand that you are not disrespecting your community by declining a business opportunity.
- ✓Contact the FTC at reportfraud.ftc.gov — complaints can be filed in multiple languages.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC has specifically warned about MLMs targeting Latino, Asian, and African immigrant communities, and multiple enforcement actions have involved companies that primarily recruited through diaspora networks.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Research the company name in English — many MLM warning sites and FTC actions are only available in English.
- ✓Ask a trusted advisor outside the recruiting community for a second opinion before joining.
- ✓Understand that you are not disrespecting your community by declining a business opportunity.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC has specifically warned about MLMs targeting Latino, Asian, and African immigrant communities, and multiple enforcement actions have involved companies that primarily recruited through diaspora networks.
FTC consumer alerts in multiple languages and enforcement actions involving community-targeted MLMs.
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Immigrants, Non-citizens, Families, Adults
Geographic concentration
United States, Canada, United Kingdom
Primary channel
In-person — Ponzi and pyramid schemes
Why this group is vulnerable
Immigrants are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-05. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC has specifically warned about MLMs targeting Latino, Asian, and African immigrant communities, and multiple enforcement actions have involved companies that primarily recruited through diaspora networks.
Source notes
- FTC consumer alerts in multiple languages and enforcement actions involving community-targeted MLMs.
Frequently asked questions
Common questions about mlm schemes targeting immigrant communities
How does the mlm schemes targeting immigrant communities work?+
Recruiters target immigrant communities where trust networks are strong and financial literacy resources may be limited. Presentations happen at community centers, churches, or family gatherings, making the pitch feel personal and safe. Language barriers make it harder for participants to research the company or understand the compensation plan. Social pressure within tight-knit communities makes it difficult to leave even when losing money.
What are the warning signs of mlm schemes targeting immigrant communities?+
Recruitment happens primarily through cultural or religious community gatherings The pitch is delivered in the community's native language and leverages cultural trust Success stories feature members of the same community who may be early adopters, not typical participants There is social pressure to join because declining feels like rejecting the community
What should I do if I encounter mlm schemes targeting immigrant communities?+
Research the company name in English — many MLM warning sites and FTC actions are only available in English. Ask a trusted advisor outside the recruiting community for a second opinion before joining. Understand that you are not disrespecting your community by declining a business opportunity. Contact the FTC at reportfraud.ftc.gov — complaints can be filed in multiple languages.
Who is most at risk for mlm schemes targeting immigrant communities?+
This scam primarily targets Immigrants, Non-citizens, Families, Adults. It is most commonly reported in United States, Canada, United Kingdom and typically appears on In-person.
Is mlm schemes targeting immigrant communities still active?+
MLM schemes targeting immigrant communities is currently on our watch list. It has been reported across US, CA, UK. Last updated 2026-04-05.
Related scams
Similar scams to watch out for
Marketplace fraud
→ 0%Marketplace payment reversal scam
A buyer on a marketplace uses fake payment confirmation, overpayment stories, or refund pressure to get goods without completing a legitimate payment.
What to do first
Only trust the actual payment app or bank balance, not screenshots.
Targets
Casual sellers
Seen in
U.S.
Travel fraud
↑ 54%Travel booking message hijack scam
A traveler receives a realistic property or booking message that requests off-platform payment, identity verification, or a new deposit.
What to do first
Keep all communication and payment inside the booking platform.
Targets
Travelers
Seen in
Europe
Identity theft
↑ 17%Medical billing identity fraud
Stolen identity details are used for medical claims or treatments, leading to fraudulent bills and corrupted records for the victim.
What to do first
Review insurance explanations of benefits regularly.
Targets
Families
Seen in
U.S.
Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
Relevant collections