Criminological perspectives on pyramid schemes: Applying routine activity theory in the Sri Lankan context

Pyramid schemes are fraudulent business concepts that entice people with promises of big profits through recruiting rather than actual product sales or services. Pyramid schemes, despite being illegal, have grown in popularity around the world, including in Sri Lanka. Accordingly, the Central Bank of Sri Lanka (CBSL) issued a red notice to the public on 24 August 2023, banning nine pyramid schemes in Sri Lanka (Pathirana, 2023). In a pyramid firm, the majority of the top-tier individuals have amassed an incredible wealth of riches while draining the money of the public in the lower-level tiers. This study uses Routine Activity Theory (RAT), a criminological paradigm, to investigate how pyramid scams thrive in Sri Lanka while victimizing the people. The study investigates how the confluence of motivated criminals, appropriate targets, and a lack of effective guardians promotes the spread of pyramid schemes in the country. This study uses a qualitative research design to explore the role of Routine Activity Theory in understanding the proliferation of pyramid schemes in Sri Lanka. Interviews with victims of pyramid schemes, law enforcement officials were conducted. Additionally, a survey targeting individuals who had been approached by pyramid scheme recruiters was administered. The sample size for the interviews consisted of 50 participants from diverse socio-economic backgrounds. Participants were selected through a purposive sampling method. This study also seeks to offer light on preventative actions and regulations that can reduce the hazards associated with such schemes. The study proposes to maximize the legal framework and efficient regulatory supervision. And, should increase public awareness and ongoing surveillance and adjustment.