What could this scam be?

[CorduroyCamel]

Quite long, sorry!

I am concerned about someone who I think may have got themselves into a dodgy situation. It is someone I have contact with via a volunteering position. I have only got vague details but wanted to ask if this rings any bells with anyone who might be able to confirm what the business (or more likely, scam) might be.

Two people, let's call them Janet and Sue. They are both in their 70s, widowed, and are fairly good friends.

Janet asked if she could borrow some money from Sue, a few thousand pounds. Without digging too much, Sue agreed to lend it to Janet.

Here's the vague bit. Janet said the money was for investing in some sort of business, where if she puts more cash in, she will get up to the 'next level' and her investment would come back to her, plus more money, within a week or so.

She wouldn't share any more info with Sue but reassured her she'd get her money back soon.

It sounds as dodgy as hell to me and I am concerned about Janet being scammed, involved in some sort of MLM or possibly got into debt / gambling. She is a sharp woman, but I suspect from knowing her circumstances could be quite lonely and vulnerable. Also concerned for Sue in case she gets asked for more money.

I know I'm being a bit vague about it all. I am not supposed to know any of this, but was told by a third party friend of Sue's. I am going to report this to the volunteer organisation from a safeguarding point of view, so not looking for advice as what to do so much, but more if this 'investment opportunity' or scam sounds familiar to anyone?

Crikey that was long! Thanks if you read it.

This reminded me of the “heart” scam which DH told me his mum got into - it’s an MLM but basically a scam. Think there’s a new version of it now.
essentially you pay x amount for a part of a heart, you need to get others in to make the full heart and when you do you go up on the leadership board and get a prize.

there is definitely a newer version of this that is exactly as you mention, you give money for a place on a board and you go up when more get involved, certain amount involved is a cash amount return.

it is 100% a scam.

It sounds like a basic pyramid scam - Sue should not lend the money to Janet.

Could be any generic MLM, no way to say anymore with limited details

Tell her not to lend the money under and circumstance.

Most definitely a scam.

www.actionfraud.police.uk/cloned-companies-investment-fraud-what-you-need-to-know

Thanks everyone, exactly as I thought. And your post is helpful @fantasialand as it is a solid example that can be used if I can speak to Sue about her lending any money. And a helpful link @BobbyBobbyBobby

Sadly Sue has already lent some to Janet, so I will make sure someone intervenes ASAP to protect them both.

Look up “ponzi scheme”.

I’ve heard of one called Cash FX. They take your money and invest it in the Forex which deals in currency. The MLM part is that they get you to buy ‘packages’ and then get others to do so as well. I think these packages are ‘training’ and you move up levels depending on how much you invest and how much others invest.

They use all sorts of clever wording like ‘passive income’. If you try and research it it’s difficult, you can only really find out about it once you’re signed up to someone’s FB group (I did it to try and explain to friends why it’s a pyramid scheme). It’s total bullshit and I know some clever women who have got involved. They talk on their professional pages about how much they are making and how great it is and then you can see on their personal Pages that they’re on the bus because their car has broken down and they can’t afford to repair it.

Steer well clear.