MMA cautions public on ponzi schemes carried out online

Maldives Monetary Authority (MMA) headquarters in Male' City. (Sun Photo/Fayaz Moosa)

Maldives Monetary Authority (MMA) has cautioned the public on ponzi schemes carried out on social media to obtain money through fraud.

In a statement released today, the central bank said that they have been informed of schemes carried out via facebook and telegram promising, under the ruse of an investment, a large amount of money within a short period of time, to fraudulently obtain money.

“People carrying out such schemes, the money taken from the public, instead of investing it, they spend it on personal uses,” the statement had read.

Apart from this, the bank noted that existing investors in such schemes will be paid with funds collected from new investors. Therefore, they stressed that such schemes are unreliable – whereas it comes to an end, many investors who had invested will not be able to get their money back.

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

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