Anna:
My irrepressible friend came to me with another brilliant idea. She offered to invest in a business project for a jewelry store. You buy earrings there for four thousand rubles, and then every week you get cashback for a whole year, more than 200% accumulates in a year - for one or two more pairs of earrings. Such is the loyalty program.
I went to the store's website. Jewelry there is not for everybody, supposedly gold and silver. And at the same time they are somehow expensive compared to similar ones in other stores. But most of all, it was the huge percentages that confused me, it seems to me that there can be no such cashback. I immediately thought it was some kind of scam. How will the store return the full cost of the earrings, and even pay extra on top? You can go broke.
A friend said that if I agree to participate, her cashback will be higher, because she invited me. Then something clicked for me - usually all sorts of MMM ask to "bring friends". And it’s clear how it all ended there.
I began to look for what they write about the company on the Internet. They work not only in Russia, but also in Kazakhstan and Ukraine. And people have already complained that they were not paid anything. Some were even cooler - they didn't even buy the jewelry themselves, but certificates for them. They didn't even give these ugly earrings to people, the company just took the money for itself.
In general, I tried to explain all this to my friend, but she is sure that she will be paid cashback and continues to persuade our friends. I want to warn everyone not to get involved in this scam!
Financial Culture Expert:
The project that Anna told about has all the signs of a financial pyramid:
According to the law, silver and gold jewelry cannot be returned. So it will not be possible to return the money spent. Moreover, it is impossible to demand the promised income, because a deposit agreement was not concluded with the buyer, in which the interest was fixed.
The organizers can only face a fine for unfair advertising, but the money will not be paid to the buyers.
Pyramids are often disguised as various enticing online projects and business ideas. The organizers lure out of the participants as much money as possible in return for the bright promises, but they do not fulfill them. People involve their friends and relatives in such schemes and, as a result, lose not only their savings, but also the trust of their loved ones.
Read more about how to protect your money from fraudsters in the text "Financial pyramid: how to recognize it".
If you or your loved ones have already invested in a financial pyramid, contact the police. More detailed instructions can be found in the text "What to do if you become a victim of a pyramid scheme".
My irrepressible friend came to me with another brilliant idea. She offered to invest in a business project for a jewelry store. You buy earrings there for four thousand rubles, and then every week you get cashback for a whole year, more than 200% accumulates in a year - for one or two more pairs of earrings. Such is the loyalty program.
I went to the store's website. Jewelry there is not for everybody, supposedly gold and silver. And at the same time they are somehow expensive compared to similar ones in other stores. But most of all, it was the huge percentages that confused me, it seems to me that there can be no such cashback. I immediately thought it was some kind of scam. How will the store return the full cost of the earrings, and even pay extra on top? You can go broke.
A friend said that if I agree to participate, her cashback will be higher, because she invited me. Then something clicked for me - usually all sorts of MMM ask to "bring friends". And it’s clear how it all ended there.
I began to look for what they write about the company on the Internet. They work not only in Russia, but also in Kazakhstan and Ukraine. And people have already complained that they were not paid anything. Some were even cooler - they didn't even buy the jewelry themselves, but certificates for them. They didn't even give these ugly earrings to people, the company just took the money for itself.
In general, I tried to explain all this to my friend, but she is sure that she will be paid cashback and continues to persuade our friends. I want to warn everyone not to get involved in this scam!
Financial Culture Expert:
The project that Anna told about has all the signs of a financial pyramid:
- They promise mountains of gold: the profitability is several times higher than what you invest.
- To get more income, you need to bring in as many members as possible.
- Aggressive advertising is being conducted, including through word of mouth.
- The income generation scheme is not transparent. The facts about the company itself are hidden: it is not clear what its financial indicators are, how to contact its organizers.
- People are offered not a product, but an investment. But the company does not have a license from the Bank of Russia to operate in the financial market, and it has no right to attract money from private investors.
According to the law, silver and gold jewelry cannot be returned. So it will not be possible to return the money spent. Moreover, it is impossible to demand the promised income, because a deposit agreement was not concluded with the buyer, in which the interest was fixed.
The organizers can only face a fine for unfair advertising, but the money will not be paid to the buyers.
Pyramids are often disguised as various enticing online projects and business ideas. The organizers lure out of the participants as much money as possible in return for the bright promises, but they do not fulfill them. People involve their friends and relatives in such schemes and, as a result, lose not only their savings, but also the trust of their loved ones.
Read more about how to protect your money from fraudsters in the text "Financial pyramid: how to recognize it".
If you or your loved ones have already invested in a financial pyramid, contact the police. More detailed instructions can be found in the text "What to do if you become a victim of a pyramid scheme".
