Russia’s central bank has exposed 154 Ponzi-like schemes and 81 illegal forex dealers in the first half of 2019, head of the regulator’s competence center for combating financial pyramids Viktoria Yeryomina said at the 4th Territory of Financial Security international conference on the protection of investors’ rights on October 3.
“In the first half of 2019, signs of illegal activity were detected at 1,393 financial market entities – financial pyramids, illegal forex dealers, etc.,” Viktoria Yeryomina said.
According to her, most of people’s complaints concern limited liability companies, as well as online projects and foreign entities that show signs of fraud. Financial pyramids operating online attract the most funds, although there are not many of them.
“Such companies operate without a financial market license. They communicate with their clients by email or telephone. There websites are registered in foreign domain zones; all money transfers are made through international payment platforms, and they regularly change their electronic wallets,” the expert emphasized.
Viktoria Yeryomina noted that scammers often use cryptocurrency.
“They attract “investments” in cryptocurrency and take people’s money in trust management,” the expert said adding that scammers often disappear afterwards.
“Overall, in the first half of 2019, 29 financial pyramid cases were opened following inspections. In 268 cases, the authorities refused to institute criminal proceedings. However, 518 administrative cases were opened under the Code of Administrative Offenses,” she concluded.