RBZ warns people against pyramid schemes

Zim Now Writer

The Reserve Bank of Zimbabwe’s Financial Intelligence Unit has issued a stern warning to the public against investing in pyramid schemes to avoid losing their money.

This follows a recent scheme E-Creator which saw scores losing their hard-earned money.

The FIU said the public should be wary of the schemes and always check if the entity is a registered financial service provider.

“The Financial Intelligence Unit notes with concern the proliferation of Ponzi and pyramid schemes in the country.

“These schemes come in various forms and guises, designed to mask their fraudulent nature and lure people into parting with their hard-earned money.

“The schemes share certain common characteristics which members of the public are advised to look out for.

“Under such schemes, people are typically asked to invest a sum of money and are promised unrealistic returns or profits, either without being asked to do anything else or being required to recruit new members or investors.

“The Reserve Bank has in the past issued warnings to the public against investing in such schemes,” FIU said.

The FIU added that schemes are illegal and unregulated while it is usually difficult for victims to get satisfactory recourse to recover their money.