The Bishkek Prosecutor’s Office warns that a pyramid scheme is a fraudulent project that imitates profitable investments. The press service of the Prosecutor’s Office reported.
According to it, funds are transferred to the scheme through constant attracting of new participants. They contribute money, then attract new people — the pyramid scheme grows.
«At the same time, people at the top of the pyramid can really earn money. And the bottom participants do not receive anything — they naively donated money to those who are one step higher. Modern pyramid schemes act quickly: aggressive advertising, collecting money from those who believe in miracles (or freebies), and that’s it. The organizers disappear with the money of deceived investors in order to open another investment project in a new place. Until they end up in prison,» they said.
The Prosecutor’s Office notes that an increase in the cases of various types of fraud, such as calls on behalf of bank employees, employment, online sales of goods and provision of various services, offers of profitable earnings, sale of movable and immovable property, renting out apartments, premises, phone calls on behalf of close relatives, friends, and so on, has been recently registered.
At least 4,373 criminal cases were initiated in Bishkek under Article 209 of the Criminal Code of the Kyrgyz Republic over the first 9 months of 2024.
Press service of the Bishkek Prosecutor’s Office
Statements regarding the organization of pyramid schemes have also been registered, for example, on Finiko — 2,016 statements, 2,005 criminal cases were initiated on them. The amount of damage from the fraudulent actions of the pyramid scheme is 8.45 million soms, $1,808 million and 711,242 rubles.
Following the investigation of criminal cases, five individuals were charged in absentia and placed on the wanted list. At least 21 individuals were brought to criminal responsibility under Article 262, Part 2 of the Criminal Code of the Kyrgyz Republic with sending the case to court.
How to identify a pyramid scheme:
- No license;
- The organization has no clear type of activity, charter, or official registration;
- The company’s financial situation, structure of income sources, turnover, business processes, etc. are kept secret;
- Promise of unreasonably high returns on investments;
- No guarantee of investment safety. Mandatory entry fee;
- The client’s obligation to receive payments is to attract several other new clients;
- Receiving bonuses for each new participant attracted;
- Payment of interest to participants from money that will later be contributed by other investors.
The Bishkek Prosecutor’s Office, in order to prevent consequences from fraudulent actions by criminals, explains security measures and protection measures against fraud to citizens of the capital:
- Do not share your personal data and bank card details with anyone.
- Do not pass on codes and secret words to those posing as bank employees.
- Do not make an advance payment without checking the online store, receiving goods, renting and/or selling movable/immovable property and various types of goods and services.
