Telangana: Thousands fall prey to fraudulent MLM firms
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Suryapet: Thousands of unsuspecting people have fallen victim to fraudulent app-based multi-level marketing (MLM) schemes that promised substantial returns on their investments within short timeframes.
These schemes displayed impressive growth in users’ account balances initially, enticing them to invest more. When they tried to withdraw the money, the investors are charged a hefty fee but the money is never returned.
The MLM companies deceive people by presenting themselves as legitimate start-ups.
One of the worst on this front was the RGA Earning App, where numerous victims held protests and lodged police complaints. These protests led to the shutdown of the RGA Earning App’s operations.
Approximately 50,000 people from the district invested ₹75 crore in the app alone. Police investigations revealed that around 10,000 people had invested ₹9.5 crore in the OnPassive Technology system, 2,000 people invested ₹20 crore, and over 2,000 people invested ₹1.2 crore in the PW app.
One victim, who invested ₹23,000 in OnPassive, reported that his virtual account balance showed ₹73,000. He was unable to withdraw or transfer the funds to his bank account. He also mentioned that he had recruited three other individuals into the scheme, compounding his losses.
Another victim, M. Srinivas of the RGA Earning App, recounted how agents persuaded him to download the mobile app, pay ₹1,800, and earn money by viewing advertisements. They also promised additional earnings for recruiting others. Despite following these instructions, Srinivas did not earn any money through the app and faced increasing pressure from those he had recruited.
Suryapet deputy superintendent of police S.G. Ravi stated that the allure of high returns ahd led people to join these MLM schemes. He warned that similar fraudulent activities have been perpetrated by various organisations under the guise of multi-level marketing.
Ravi emphasised the importance of skepticism when approached by organisations promising unusually high investment returns and highlighted ongoing police efforts to raise awareness about such fraudulent activities. He also noted that many of these deceptive companies have transitioned their operations to online platforms and mobile applications, making them harder to trace and shut down.
Content retrieved from: https://www.deccanchronicle.com/southern-states/telangana/telangana-thousands-fall-prey-to-fraudulent-mlm-firms-1846285.
