Trading standards officers have warned women that joining a controversial money-making scheme, which is spreading across Oxfordshire, could cost them thousands of pounds.

Women Empowering Women - which is also being investigated by the Home Office - is flourishing in Oxford and has now spread to Witney, Bicester and Steeple Aston.

Supporters of the venture have defended its methods, saying that potential investors are warned of the risks before they hand over their cash.

Martin Allen, a trading standards officer in Oxfordshire, said: "We keep getting more and more information about this money-making venture.

"The Carterton syndicate is starting to slow down but it is now taking hold in other parts of the county. If people do not get in at the top of the pyramid they could find themselves losing thousands of pounds."

The club starts with eight people each investing £3,000 on the promise that if they recruit another eight prepared to give £3,000 they will get £24,000.

The £3,000 amounts can also be broken down between groups of people. Only women are allowed to join the club.

Despite the criticism, Anna Antell, a magazine researcher from Oxford who is involved with the scheme, said: "Everybody who comes along to the meetings is told about the risks and warned not to get involved if they cannot afford to.

"It is all about helping each other out and it works by introducing people who in turn introduce others.

"Of course it can be abused if you are greedy, but we have sensible, intelligent people coming to the meetings.

"There are solicitors, magistrates, and my mother, who is a church deacon, lent me the money to get started. These are not gullible people."

Miss Antell explained it usually takes about four to six weeks before people receive their money but claimed a friend had gained £36,000 in nine days.

Up to 100 women congregate at houses across the county where it is claimed £100,000 can be handed out in an evening.

Schemes where the main motive for joining is profit from recruiting others are illegal, but Women Empowering Women avoids this by claiming that the money contributed is not an investment but a gift.

However, Mr Allen said tradiings standards were waiting to hear from the Home Office about whether such schemes were illegal lotteries.

"If we find it is illegal we will try and take the necessary steps to deal with the situation," he said.