BVI FSC warned investors on Pyramid scheme frauds

The British Virgin Islands Financial Services Commission has issued advisory warning concerning Pyramid Scheme Frauds and other related investment scams. In the warning, pyramid scheme is defined as fraudulent money-making scheme based on non-sustainable business model that involves the exchange of money primarily for enrolling other people, without legitimate product or service. While legitimate trading schemes are based on valuable goods and services, illegal pyramid schemes focus on recruiting more and more investors. The members who join the group may get profit by signing up new members.

The deals of this kind are usually scams even if they look like a form of investment opportunity, for example, forex trading. It is a form of financial fraud. The commission provides more information on these fraudulent schemes, and how to avoid becoming their victim, on its website www.bvifsc.vg.

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