Hyderabad: Despite warnings from the police not to fall prey to money swindling companies, the public continues to be dazzled by these get-rich-quick schemes and the companies continue to make money at the expense of innocent people.
The companies give fancy titles to their representatives, who have to enrol investors; the more they enrol the higher their commission.
The lure for investors is the higher returns these bogus schemes offer. A chain of investors is developed, which is like a pyramid, said an official of the Cyberabad Police. As the number of investors grow, the chain breaks, and the people in the lower strata of the pyramid suffer huge losses.
According to state CID officials, these companies usually target people from the middle class and lower middle class who may have some extra cash to invest. They use different tactics to publicise, attract, and convince the victims that the company is authentic and investors will get higher returns. “These companies have no licence or permission from the Reserve Bank of India to collect deposits from the public,” said a senior police officer of the CID.
In order to mislead people, a single company launches many sister companies to show that they are a big group of companies. The promoters publicise and promote their schemes through colourful campaigns by using film stars and government servants.
Cyberabad Police Com-missioner V.C. Sajjanar says that one such company targeted unemployed youth, housewives, and retired employees with the promise of a part time income. It was revealed during the investigation that several men in and around Hyderabad had been cheated of crores of rupees by the company. The majority of victims were from Haryana, Delhi, Madhya Pradesh, Maharashtra, and Orissa.
“The public is cautioned not to join in any such illegal money circulation schemes by whatever name they approa-ch, be it Multi Level Marketing, Network marketing, Direct marketing, Referral Marke-ting among the other catchy names,” said the Cyberabad Police Comm-issioner. “Cyberabad Police reiterates the eternal fact of human life that there are no shortcuts to earn money or wealth.” He added that the public can take the assistance of local police if they suspect any such activity involving the promise of easy and quick money is going on.
“The companies conduct investors’ meetings in star hotels in a cozy atmosphere. These tricks are enough to lure common people and invest their money,” said a senior police officer from the Central Crimes Station, Hyd., who has investigated these cases. Any person joining such scheme and investing their hard earned cash should also be aware that there is no refund or returns,the Comm-issioner warned.
