TG CID warn against rising pyramid and MLM fraud schemes
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“These schemes target unsuspecting investors by masquerading as legitimate ventures in cryptocurrencies or products such as agro goods, garments, herbal health items, and household products. Victims are lured with promises of unrealistic returns, daily income, and commissions for recruiting others into these fraudulent chains,” Director-General of CID Shikha Goel said.
The modus operandi of these schemes revolves around recruiting new investors to pay returns to earlier participants, without any legitimate or sustainable business activity. “Only those positioned at the top of the pyramid profit significantly, leaving the majority to incur heavy financial losses. Many of these operations are orchestrated by individuals based abroad, raising concerns that funds generated from these schemes may be diverted to anti-national activities,” she explained.
The police officials advise individuals to be sceptical of high returns and lavish promises, such as luxury cars and foreign tours, which are tactics used to entice victims. “People should avoid joining schemes that require recruitment for income, as these are usually pyramid scams. Attending promotional events, such as flashy seminars and motivational talks, should also be avoided, as they are designed to mislead attendees into believing the legitimacy of these fraudulent schemes. Social media platforms like WhatsApp, Telegram, and Facebook are commonly used by fraudsters to lure victims, so it is important to be cautious and avoid joining groups that promote such schemes,” warned the DG.
Further, citizens should cross-check the legitimacy of these schemes through authorities like the Ministry of Corporate Affairs (MCA) or the Securities and Exchange Board of India (SEBI). Any suspected fraud should be reported promptly to the nearest police station, through the helpline 1930, or on the official cybercrime website at www.cybercrime.gov.in. Reports can also be submitted to the Cyber Fraud Registry via WhatsApp at 8712672222.
Content retrieved from: https://www.thehindu.com/news/national/telangana/tg-cid-warn-against-rising-pyramid-and-mlm-fraud-schemes/article69119953.ece.
