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Investment fraud

Day by day, a lot of investment fraud is being reported to us. Investment fraud usually promises guaranteed quick and large sum of return involve. They can seem promising but if its too good to be true always take a step back and think.

Before you invest:

Remember to always check if the investment is approved by authorities.

Common types of investment fraud

Cryptocurrencies are digital currencies. Bitcoin is the most well-known form of digital currency. However in Maldives, cryptocurrency is not treated as ‘money’ or a ‘financial product’ and you have less protection if you invest and it turns out be a scam or you lose a lot of money.

Ponzi schemes are scams that use funds collected from new investors to pay existing investors. No real investment exists and eventually these schemes collapse.

Scammers create channels on on social media and contact people asking them to download or invest through apps. They promise you will see high returns very quickly and you will think you do, but the scammer uses money other people have invested to pay you some return.

They have their own group of people who will advocate and push this scheme forward by showing the public that the returns they received are high.

Once you have seen a return, the scammer will persuade you to encourage your friends, family and colleagues to invest in the same scheme.

They will pay them ‘returns’ and ask them to recruit people they know into the scheme as well.

Eventually, when the scammer runs out of money or the pool of people investing becomes less the scammer will disappear and no one will be able to recover their money.