The Central Bank of Russia (CBR) has identified 146 financial pyramid schemes in just six months this year. Fraudsters often lure people with weak financial knowledge to participate in investment scams related to cryptocurrency or crypto mining operations.
The Bank of Russia said that as investment demand rises, the pyramid scheme is booming
The number of financial pyramid scams discovered by regulators between January and June 2021 is 1.5 times that of the same period last year Announce this week. The financial authorities attributed the surge to the increase in the activities of “unfair market participants” in the context of continued economic recovery and increased demand for Russian investment.
The Bank of Russia also emphasized that fraudsters use “people’s insufficient financial and digital literacy” to persuade them to invest in projects related to hot topics.Investors often invest funds in cryptocurrencies, “pseudo-cryptocurrencies” or counterfeit Crypto mining CBR pointed out in a press release issued on Thursday. The bank further elaborated:
Criminals communicate with potential customers on social networks and messengers, and carry out active targeted advertising campaigns.
The regulator also revealed that compared with the first half of 2020, the number of illegal securities market participants (mainly foreign exchange dealers) has soared by 70%. The Bank of Russia discovered 239 such companies this year. The total number of entities in the financial market that have the characteristics of a financial pyramid or suspected of other illegal activities reached 729, an increase of 16.6% over the first half of the previous year.
Since June, the Central Bank of the Russian Federation has maintained and updated a list of suspicious financial companies to warn potential investors, according to Valery Lyakh, director of the Anti-Unfair Practices Department. CBR officials asked Russian citizens to support the bank’s efforts:
If you encounter financial fraud, please report it to Russian banks and law enforcement agencies. This information will help combat illegal operations more effectively.
Lyakh also expressed the hope that the recently passed Russian legislation allows pre-trial blocking of fraudulent websites, which will help quickly restrict the activities of such platforms. He believes this will limit the number of victims participating in Russia’s illegal investment program.
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