Telangana Cyber Security Bureau issues advisory against MLM frauds

They are targeting innocent investors under guise of selling crypto currencies or other products such as agro, garments, herbal and health, household items

Hyderabad: The Telangana Cyber Security Bureau (TGCSB) issued an advisory in view of rise in pyramid/MLM frauds, targeting innocent investors under the guise of selling crypto currencies or products such as agro, garments, herbal and health, household items in different districts of Telangana.

“These fraudsters promise unrealistic returns, daily income, or commissions for recruiting new members into a chain, enticing victims into Ponzi schemes. This has resulted in loss of crores of money of innocent public over which cases have been booked. It is likely that, this may escalate,” said Shikha Goel, Director TGCSB.

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These frauds rely on ‘new investments to pay older investors’, without any genuine or profitable business activity. “Only those at the ‘top of the pyramid’ gain significant benefits, leaving the majority of investors to lose their hard-earned money. Many of these schemes are controlled by masterminds operating from abroad, raising concerns that such funds could be diverted to anti-national activities,” she explained.

The police asked people to beware of false promises made by the fraudsters and always verify the company names and schemes.

“Fraudsters often misuse the names of reputed companies to deceive investors. It advisable to visit the official outlet or office of the company mentioned to verify their involvement,” Shika Goel said.

The police warned that such schemes may fund illegal or anti-national activities, pose a threat to national security.

 

Beware of false promises:

• Do not invest in any scheme that requires you to recruit new members for earning income
• Do not attend soliciting seminars or programmes
• Fraudsters use motivational talks, flashy events, presentations to mislead potential investors
• Stay vigilant on social media
• Avoid joining Whatsapp, Telegram, Facebook or other groups promoting such schemes
• These platforms are used to manipulate and entice victims into trap
• Do not click on suspicious APK files, links or apps associated with such schemes
• These may contain malware designed to steal your sensitive information
• Cross-check legitimacy on regulatory websites