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RBM warns against get-rich-quick schemes

The Reserve Bank of Malawi (RBM) has warned the public against joining any suspicious financial schemes.

It follows an increase in suspicious informal financial organisations operating in the financial services industry.

In a statement signed by the Central Bank indicates that transactions done through such informal financial organisations usually result in financial fraud.

Financial consumers are therefore advised to be aware of how fraudulent transactions and schemes occur.

Out of the several forms of fraudulent financial schemes which attract the general public, the pyramid scheme is the most common form being used.

This is a non-sustainable business model that involves promising members abnormal financial rewards and it grows at a very fast rate.

Requirements for joining fraudulent schemes are in most cases in monetary terms in the form of registrations fees amounting to as high as K300, 000 per member.

RBM has since cautioned the general public to always assess the authenticity and legitimacy of any financial organisation or grouping before joining or investing any money.

Pyramid schemes promise people of getting rich quick without putting in any work

It warns that the public ought to be sceptical of financial organisations that require one to rope in subsequent members to increase investment and chances of getting a loan.

Members of the public are also being implored to report to the Malawi Police Service of suspicious financial activities or schemes to enable appropriate investigations and actions by relevant authorities.

 

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