The Securities Commission of Papua New Guinea wishes to alert the public of the growing number of fast money scams and pyramid schemes that are disguised as investment schemes offering unrealistically high returns. These schemes and scams are targeting individuals and communities across the country, particularly during the festive season.
These schemes and scams are designed to lure the general public by publicizing high returns of the early investors, which are most likely sourced from the proceeds of further funds raised from other investors and not from a genuine investment strategy. These schemes and scams are designed to collect funds from the latter investors under the false promise of unrealistically high returns in a short period of time.
Usually one or two small dividends payments are first made to the unsuspecting latter investors to lure them in however these dividend payments usually stop and the participants/investors are pressured to invest more money in a short period of time. Once a participant has invested, these scams tend to pressure the participant into investing more money in the scam in a short period of time, under the false promise of receiving an unrealistically high “windfall” in the coming days or weeks. These type of scams are designed to deceive participants into investing their hard earned money and usually once they have collected large sums of money from thousands of investors, these scammers usually disappear with the funds.
Once regulatory authorities become aware of the scam through complaints posted by the participants it is usually too late for regulatory action as the scammers usually clean out the accounts and go into hiding. Therefore awareness and prevention is important. Please advise your relatives and relations not to invest in schemes and scams that promise unrealistically high returns.
The above are all major red flag warning signs that you are investing your hard earned money in a fast money scam or pyramid scheme in which you will eventually lose all your investments.
THEREFORE, BE AWARE OF THE WARNING SIGNS:
- Unrealistic promises of “guaranteed” high returns.
- Pressure to invest “immediately”.
- Vague or unclear “business models”.
- Unlicensed Operators not registered with SCPNG or relevant regulatory authorities.
- Pyramid or Ponzi Structures.
