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Definition of pyramid scheme noun from the Oxford Advanced Learner's Dictionary

pyramid scheme

noun
 
/ˈpɪrəmɪd skiːm/
 
/ˈpɪrəmɪd skiːm/
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  1. an illegal way of making money, in which people are persuaded to invest money or sell a product and to persuade others to do the same, with the later investors paying money to the earlier investors, until the payment structure collapses and most people lose their money
    • He warned that pyramid schemes were not allowed.
See pyramid scheme in the Oxford Advanced American Dictionary
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