Cash Gifting - Don't Get Scammed!

Los Angeles - Cash gifting schemes are on the raise and they are being fanned by the bad economy. Pitchmen say all you need to do is send them money as a gift and eventually, bigger money gifts will come your way. Experts say cash giving is not only bad business, but it's illegal.

According to Gary Almond, the Vice President of Operations for the Southland's Better Business Bureau, people who send the money are unwittingly involving themselves in a crime.

Gary Almond:

"It's designed to separate you, or someone else from their money, and for you to get somebody else to basically perpetuate the same fraud, and really, it's illegal and it's immoral... All these people knowingly or not are subject to criminal prosecution.... you have just as much luck getting your money back as if you took it out and threw it on the street."

Phil Shuman has more on cash gifting in this video report.

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Dana Simas, Deputy Press Secretary, Office of the Attorney General:

"Cash-gifting schemes are illegal under Penal Code section 327, California's endless chain/pyramid law. We encourage individuals who are approached by individuals peddling this scam or have fallen victim to contact our office at (800) 952-5225 or file a complaint online at www.ag.ca.gov/consumers/general.php ."