Schemes past and present

CityPress - - Business -

In the past year, the FSB has brought sev­eral schemes to public at­ten­tion, warn­ing that they are in­volved in du­bi­ous prac­tices and must be avoided.

De­fenceX: This is a Ponzi scheme that was most re­cently in the news when ad­min­is­tra­tors Price­wa­ter­house­Coop­ers is­sued a call for in­vestors to register a claim be­fore the end of Au­gust. If you were a De­fenceX in­vestor who lost money, you should visit the re­pay­ment ad­min­is­tra­tion web ap­pli­ca­tion web­site at rawa.co.za, or call 012 429 0033.

The scheme of­fered to pay in­vestors 2% a day and by the time it was shut down, it had R350 mil­lion in the kitty.

The Wealth Hub: Most re­cently, the public was warned that The Wealth Hub, which claims to be a stokvel, is not reg­is­tered with the FSB and is not an au­tho­rised fi­nan­cial ser­vices provider.

The scheme is un­der in­ves­ti­ga­tion by the Na­tional Pros­e­cut­ing Au­thor­ity for op­er­at­ing a pyra­mid scheme and for money laun­der­ing. To join the scheme, you had to re­cruit 39 mem­bers, each of whom had to pay R200 to join. You would have re­ceived a to­tal of R7 800, which qual­i­fied you to move to the next level of the pyra­mid. As you reached new lev­els, you were re­quired to pay an ad­min­is­tra­tion fee to man­age­ment.

MMM: This is a new online scheme in South Africa that prom­ises to pay you as much as 30% a month and calls it­self a “so­cial fi­nance net­work”.

If you read the info box above, a high in­ter­est prom­ise of 30% a month should al­ready start ring­ing warn­ing bells.

The min­i­mum amount to join is R100 and you re­ceive “mavro cur­rency”.

You also get the bank de­tails of another mem­ber and de­posit your R100 di­rectly into their bank ac­count.

You can then buy and sell your mavro through the web­site, although there is no in­di­ca­tion of the price.

The web­site says: “MMM plays just a role as some kind of a dis­patch, which con­nect the par­tic­i­pants.”

The poor English and bad gram­mar on the web­site should ring a sec­ond warn­ing bell that this is a scheme you should avoid.

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