Beware of MLM frauds, pyramid schemes

Sangareddy: The prevalence of pyramid/MLM frauds has been increasing, targeting innocent investors under the guise of selling cryptocurrencies or products such as agro, garments, herbal & health, household items in different districts of Telangana.

Speaking about the rising prevalence of these frauds, N Venu Gopal Reddy, DSP, Cyber Security Bureau, Sangareddy said 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. Elaborating further, he said these schemes 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,” he informed. Urging people to take precautionary measures, Venu Gopal Reddy said, “Do not invest in any scheme that requires you to recruit new members for earning income. Fraudsters use motivational talks, flashy events, and presentations to mislead potential investors.

Avoid joining WhatsApp, Telegram, Facebook or other groups promoting such schemes. These platforms are used to manipulate and entice victims into the 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”. He emphasised to file a complaint at the nearest police station or report suspicious activities on 1930 helpline or at www.cybercrime.gov.in or the Cyberfraud Registry Whatsapp number 8712672222.