In this article, we introduce a structural analysis model to analyze the characteristics of the communication network structure of pyramid scheme organizations. This model is a combination of SNA (Social Network Analysis) model, motifs analysis model, and exponential random graph model. It can analyze the network from three aspects: global structure analysis, microstructure analysis, and construction feature analysis. We use this model to analyze the characteristics of multiple aspects of a typical pyramid scheme organization's communication network, and the analysis results effectively expand the understanding of the characteristics of the pyramid scheme organization.
SNA model can be used to analyze the global structure of the pyramid scheme communication network.
Motifs analysis model can be used to analyze the microstructure characteristics of the pyramid scheme organization communication network.
Exponential Random Graph Model can be used to analyze the construction characteristics of the pyramid scheme communication network.
(1) Background: The pyramid scheme has caused a large-scale plunder of finances due to the unsustainability of its operating model, which seriously jeopardizes economic development and seriously affects social stability. In various types of networks, the finance flow network plays an extremely important role in the pyramid scheme organization. Through the study of the finance network, the operational nature of pyramid scheme organizations can be effectively explored, and the understanding of pyramid scheme organizations can be deepened to provide a basis for dealing with them. (2) Methods: This paper uses the motifs analysis and exponential random graph model in social network analysis to study the micro-structure and the network construction process of the “5.03” pyramid scheme finance flow network in Hunan, China. (3) Results: The finance flow network is sparse, the microstructure shows a typical pyramid structure; finance flows within the community and eventually flows to the most critical personnel, there is no finance relationship between different communities, and there are few finance relationships between pyramid salesmen of the same level. The inductees are in a key position in the network, which may explain why they are transferred to prosecution.
As a form of organized crime, pyramid scheme has brought huge economic losses to many countries, especially China, and caused serious social problems. How to deeply analyze the structure of pyramid scheme organizations is a necessary topic to explore and combat pyramid scheme organizations. Social network analysis is an effective method to study organized crime. Among them, the motif and exponential random graph models are effective tools for studying organizational microstructure, endogenous process. For the first time, this paper uses the social network analysis to study the interpersonal relationship network of a specific pyramid scheme organization, the typical case of “5.03” in Hunan Province was taken as the research object, and the above model was used for modeling analysis. The results show that the interpersonal relationship network has a sparse density. The microstructure is not a pyramid structure that is generally considered, but presents more ternary closures. Cross-community links, cross-level links between core employees and surrounding employees are less. The pyramid scheme network of interpersonal relationships has obvious homogeneity characteristics.
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