Gifting Tables Scam

gifting tables scam

Gifting Tables Scam: How It Works

Have you heard of the Gifting Tables Scam? It is making a comeback after being categorized as a pyramid scheme a decade ago. What is a gifting table? In this material, we will look at how it works and how you can avoid it. Let’s take a look at what turned out to be one of the most prevalent financial scams out there.

The Gifting Tables Scam consists of a four-level pyramid. It has eight participants assigned to the bottom row, four to the third row, and two to the second row. The top row is for only one player, which takes turns.

gifting tables

The top-level participant is referred to as the “Dessert.” However, it gets better. The two players on the second row are referred to as “Entrees,” while the four participants on the 3rd row are “Soup and Salads.” Last but not least, the eight participants on the bottom row are referred to as “Appetizers.” All it’s about the food, hence the term “gifting tables.” How do you get in?

To participate in a Gifting Table game, new players are asked to pay a fee. It used to be $5,000 in cash, but indeed it could change according to the organizer. This fee is paid to the Dessert, the player detaining the pyramid’s highest position.

In these modern days, the Gifting Tables scam could also be known as the Blessing Loom scheme. The participant positions’ names are changed to more of a business approach (leader, coach, etc.).

What Is a Gifting Table Game?

Let’s see how the game is played, shall we?

The entry fee, typically considered as a gift, secures the new player a position as an Appetizer on the bottom row. Players progress from the bottom row of the pyramid by recruiting other participants to join the Gifting Tables scam.

When eight new participants join the Gifting Table game, each having made the “gift” to the player situated on the Dessert position at the top of the pyramid, the Dessert leaves the game and keeps the money paid by the new participants. If the entry fee is $2,000, then the Dessert participant leaves with $16,000.

Then, that particular Gifting Table is split, with the two participants occupying the Entree position on the second row moving to the Dessert position (top) of two new pyramids. Does it make sense so far?

As expected, the rest of the Gifting Table members move up a row on one of the two newly-formed pyramids, and the search for 16 new participants begins. The success of the Gifting Tables scam depends on new participants joining and making the entry gift.

Perpetrators of the game usually publish brochures and other promotional materials. This way, the recruits feel like they are part of an official game. One of the gimmicks that the organizers use is telling participants that the money paid and received during the Gifting Tables game are tax-free “gifts” under the IRS Code. Also, they say that the IRS lawyers approved Gifting Tables as a legal venture generating tax-free proceeds.

Finally, the organizers advise and counsel players not to report on their tax returns the income received through their participation in the game.

Besides this scheme, beware of the Flash Rewards Scam as well.


Gifting Table Scam: How To Report

Let your friends know about the Gifting Table scam by sharing this article. You can also officially report crooks and any other suspicious activities to the FTC (Federal Trade Commission) using the link below:

Report To The FTC Here

How To Protect Yourself More

Be the first to receive the most prevalent scams every week. Subscribe to the Scam Detector newsletter. You will receive periodic emails and messages – not to spam.

Last but not least, educate yourself with other fraud-related articles listed under this paragraph, so that you know how to stay safe online. Feel free to use the comments section below to expose other scammers.

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selma hrynchuk
Selma HrynchukSelma is a fraud prevention specialist renowned for her expertise in private eye investigations and a remarkable partnership with law enforcement agencies. Beyond her investigative triumphs, her public speaking engagements and written works have empowered countless individuals to protect themselves and stay ahead of deceptive schemes. Selma's legacy shines as a tenacious agent of change, unyielding in her commitment to battling fraud and ensuring a safer world for all.

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