Walls are closing in for ‘pyramid schemes’ in Thailand
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Authorities have urged damaged parties to come forward and file complaints against suspects in the scandal engulfing The iCon Group as investigations continue into allegations that it ran a pyramid scheme.
While 18 suspects including the company’s CEO and founder have been arrested, the fraud scandal, one of the largest in recent years, will not be the last as pyramid scams and other fraudulent investment schemes are still thriving, authorities said.
Despite the well-documented risks and repeated warnings by law enforcement agencies, many continue to fall victim to scammers because they allow themselves to be lured by the promise of quick and easy money lures.
In a pyramid scheme, members are often promised big profits for recruiting new members. It is often structured to funnel money put in by new investors back to earlier participants.
It is designed to appeal to people’s greed and desire for financial gain, offering high returns on investment, with little or no effort required by the investor.
Many pyramid schemes are often disguised as multi-level marketing (MLM) businesses or other legitimate investment opportunities.
Kosolwat Inthuchanyong, director of the Office of the Attorney-General (OAG)’s rights protection and legal aid office, told the Bangkok Post that pyramid schemes disguised under the cover of direct selling have been around in the country for a long time.
“They respond to people’s greed and offer hope to people who are struggling with the current economic hardships,” he said.
He said many who fall victims include unsuspecting retirees or elderly people who were conned out of their hard-earned life savings by pyramid scams in disguise.
Scammers, many of whom are celebrities, often use charm, social status and even fake credentials to build trust with potential victims, he said.
Content retrieved from: https://www.bangkokpost.com/thailand/special-reports/2886738/walls-are-closing-in-for-pyramid-schemes.
