MMA warns against Ponzi scheme

Maldives Monetary Authority tower | Photo: Maldives Independent

Malé, Maldives – Fraud investment schemes are on the rise, wants central bank Maldives Monetary Authority (MMA).

In a statement released by the authority on Thursday night, MMA cautioned the public against Ponzi schemes run via social media platforms such as Facebook and Telegram. The statement detailed that these fraudsters promise return on investment with in a short period, but use typical Ponzi tactics where funds collected from new investors are used to pay existing investors.

“The money taken from the public is spent on personal uses instead of actual investments” the statement had read.

MMA stressed that such schemes cause huge financial losses to many people.

So far, the name of the business entity responsible for this Ponzi scheme has not been named and the amount circulated thus far in the scheme has also not been confirmed. However, local news sources have reported that over MVR 30,000 has been circulated as pert of the scheme by a big company in the Maldives.

“Therefore, we urge the public to be cautious regarding such schemes, and not take part in them,” MMA’s statement read.