Maldives Monetary Authority (MMA) has urged the public to be wary of fraudulent schemes run on social media.
In a statement, MMA said it has been notified of a fraudulent scheme run on social media promising large, immediate profits in return for an investment. MMA said this is a Ponzi scheme, where funds from existing investors are used to pay new investors.
The central bank said funds collected from investors in such schemes are used for the personal uses of the people running the schemes. MMA further stated such schemes are not sustainable and would result in major losses to investors as soon as the cycle of the scheme is broken. MMA added even the banks will not be able to return the funds invested in such a scheme if the operators of the scheme do not return the funds.
Therefore, the central bank urged the public to be wary of such schemes and to ensure the credibility of any person presenting an investment opportunity.