It is shocking news that around 2,000 college students were involved in an illegal pyramid scheme in Chongqing Municipality recently.

But it is not the first time that students have been caught up in such an unlawful activity - they are easy prey.

It is easy to understand why they are attracted to the schemes. They are lured by promises of high economic returns.

In a typical pyramid scheme, people pay a sign-up fee and are obliged to buy over-priced products which cannot be refunded. The only way that a company makes money is by bringing more people into the network, making money from the sign-up fees.

Those who have joined make money by collecting sign-up fees and selling products to the people they recruit.

People who join the scheme earlier and are at the top of the pyramid earn more money.

Driven by the idea of getting rich overnight, those already involved go on a hard sell to recruit others.

China imposed a ban on direct sales in 1998, as it has led to widespread fraud, consumer losses and social disorder. But illegal activities have again surfaced in recent years.

In the Chongqing case, it was reported that dozens of young people were held against their will by their "supervisors," who were people higher up the pyramid, day and night.

They lived a harsh life but it is claimed that they enthusiastically took part in various cult-like activities to boost self-esteem.

All were made to believe that pyramid selling was the way to success and the more people they signed up, the closer they were to a fortune.

Many college students, who had been entangled in the scheme, turned to their classmates and friends, luring them into the network.

These cases show that the education system has failed in guiding our students on a healthy road of development. There is a lack of effective moral education to equip students to resist such temptations.

And the management of students on campuses is also worrying, as little was done when they were absent from classes or gone for days or even months.

(China Daily June 29, 2004)