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SCAM STOPPER: Attorney General Ellison warns Minnesotans about fake electric scooter scam

July 23, 2025 (SAINT PAUL) — Today, Attorney General Keith Ellison issued a warning to Minnesotans about how to spot – and avoid – a pyramid scheme selling fake e-scooters. 

This warning is part of the Attorney General’s Scam Stopper series, aiming to help protect Minnesota consumers from common scams.

“I encourage Minnesotans to be on the lookout for e-scooter pyramid schemes and to report them to my office if you do come across one,” said Attorney General Ellison. “Be wary of business ventures that require you to recruit friends to make money, don’t invest in products you’ve never seen, and don’t let salespeople pressure you into making decisions before you do your research. Most importantly, remember that if something seems too good to be true, it probably is.”

How the Scams Work

Consumers are asked to invest in an electronic scooter company, often by a friend or an acquaintance, with the promise of receiving payments from the company after a certain amount is invested. The scammers tell consumers that they will receive payments from the company as scooters are rented out in the world. The problem? There are no scooters. 

This is a pyramid scheme which asks investors to recruit other people to buy into the scam. Because there is no real product involved, the money put into the scheme by those new investors is the scheme’s only source of income. Older investors are paid with the money put in by the newer investors they recruit. Eventually and inevitably, schemes like this run out of new people to recruit, which causes their only source of income to dry up and leaves newer investors with nothing to show for their supposed investment.

Here’s what you should watch for:

How to Protect Yourself

Research before you buy

Many pyramid schemes have negative reviews or consumer warnings from government agencies or groups like the Better Business Bureau. Always do your research to see if the company you’re about to invest in might be a scam.

Don’t trust a product you can’t see

If a company promises to pay you but doesn’t seem to have any product that actually generates revenue, the company is a scam. If you’ve never seen an e-scooter from the brand asking you to invest, and can’t tell if the scooters exist anywhere, do not trust the company. 

Similarly, if you cannot find where a company is located or how to contact a company, you should be wary that the company is not legitimate. 

Don’t fall for high pressure sales tactics

Pyramid schemes often rely on personal relationships to recruit new members. Even if someone you know asks you to invest in an e-scooter company, take the time to research the company for yourself. Don’t let yourself feel pressured into investing in a business you aren’t completely sure is legitimate. 

If something seems too good to be true, it probably is

Pyramid schemes, including fake e-scooter companies, promise high returns on your investment. They often market themselves as a way to “get rich quick.” No company is giving away free money. If you’re asked to invest in a company for high returns with seemingly no downside, you should be skeptical. You can read more about how to spot a pyramid scheme on the Federal Trade Commission’s website.

When a Scam Happens to You

It is essential that Minnesotans report scams to the Attorney General’s Office or to law enforcement. Many people feel embarrassed when a scam happens to them, but the truth is that con artists and scammers are often professionals with years of experience. They are good at what they do, and they count on people feeling too embarrassed to protect others by speaking out. If a scam happens to you, the best thing to do is report it right away.

Reporting a Fake E-Scooter Scam

If you or someone you know have bought into an e-scooter company you believe is a pyramid scheme, here are a few steps to take: