How to Report a Pyramid Scheme?

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Updated: April 2026 Oleksandr Honcharov, CEO at FlawlessMLM How to report a pyramid scheme? If you believe a business is operating as a pyramid scheme, you can report it to federal and state consumer protection agencies. In the United States, the primary agency is the Federal Trade Commission (FTC). Reports help regulators build cases and protect other consumers from the same fraud. Where to File a Report FTC (Federal Trade Commission) — file a complaint at ReportFraud.ftc.gov. This is the primary federal agency for pyramid scheme investigations in the U.S. State Attorney General — each state has a consumer protection division that accepts complaints about fraudulent businesses. SEC (Securities and Exchange Commission) — if the scheme involves investment opportunities, report it to the SEC. Better Business Bureau (BBB) — file a complaint to create a public record. Local law enforcement — if you have lost a significant amount of money, consider filing a police report. Can you sue a pyramid scheme? Yes, you can file a civil lawsuit against the operators of a pyramid scheme to recover your losses. In some cases, class action lawsuits have been filed by groups of former participants. Consult an attorney who specializes in consumer fraud or securities law. Definition: To report a pyramid scheme, file a complaint with the FTC, your state attorney general, or the SEC. You can also sue the operators civilly to recover financial losses. Document everything before reporting: contracts, payment receipts, emails, text messages, income claims, and any marketing materials you received. The more evidence you provide, the stronger the case.

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