Thousands Fall Prey to Fraudulent MLM Firms

Suryapet: Thousands of unsuspecting people have fallen victim to fraudulent multi-level marketing (MLM) schemes that promised substantial returns on their investments within short timeframes. These schemes, operating through mobile applications, initially displayed impressive growth in users' account balances, enticing them to invest more money with the assurance of multiplying their funds rapidly.

However, investors soon discovered that withdrawing their money was impossible. Despite the substantial amounts appearing in their accounts, attempts to transfer funds to their bank accounts were unsuccessful, leaving them in a state of uncertainty and hope that withdrawal options would eventually be made available.

The MLM companies deceived people by presenting themselves as legitimate startup ventures offering guaranteed returns. This strategy attracted a large number of gullible individuals seeking quick financial gains.

One of the most affected platforms, the RGA Earning App, saw numerous victims who, upon realising the deceit, lodged complaints with the police and organised protest demonstrations outside the company's office. These protests led to the shutdown of the RGA Earning App's operations.

Approximately 50,000 people from the district invested a total of Rs 75 crore in the RGA Earning App alone. Police investigations revealed that around 10,000 people had invested Rs 9.5 crore in the OnPassive Technology system, 2,000 people collectively invested Rs 20 crore, and over 2,000 people invested Rs 1.2 crore in the PW app.

One victim, who invested Rs 23,000 in OnPassive, reported that his virtual account balance showed Rs 73,000. However, he was unable to withdraw or transfer the funds to his bank account. He also mentioned that he had recruited three other individuals into the scheme, compounding his losses.

Another victim, M. Srinivas of the RGA Earning App, recounted how agents persuaded him to download the mobile app, pay Rs 1,800, and earn money by viewing advertisements. They also promised additional earnings for recruiting others into the scheme. Despite following these instructions, Srinivas did not earn any money through the app and faced increasing pressure from those he had recruited.

Deputy Superintendent of police S.G. Ravi from Suryapet stated that the allure of high returns led people to blindly join these MLM schemes. He warned that similar fraudulent activities have been perpetrated by various organisations under the guise of multi-level marketing. Ravi emphasised the importance of skepticism when approached by organisations promising unusually high investment returns and highlighted ongoing police efforts to raise awareness about such fraudulent activities. He also noted that many of these deceptive companies have transitioned their operations to online platforms and mobile applications, making them harder to trace and shut down.