Christmas-themed pyramid schemes are on the rise and a small-loans trust is warning people to avoid them.
Natalie Vincent, of Ngā Tāngata Microfinance, said many pyramid schemes use cryptocurrencies, and are promoted primarily to Māori and Pasifika families.
Vincent said a new pyramid scheme is being sold to vulnerable people in the form of ‘gifting’ or ‘koha’ with the promise of making quick money.
It suggests people can get up to $20,000 after making three payments of $150.
Vincent said some people might make money at the very early stages, but further on, as is the nature of such schemes, it will collapse, leaving no money for anyone.
“The really scary thing is that a number of people that have come forward to us have actually borrowed money to put into these schemes.”
She said any investment scheme that derives its income from recruiting new members, is considered by law to be a pyramid scheme, and is illegal.
Vincent said using cryptocurrency instead of cash allows would-be scammers to operate in the shadows, independent of banks.
Oua toe fktokanga he kakai fkpikopiko mo manumanu tenau ohofi we foi loi ko eni koe toko lahi taha he kakai oku nau ave takai ae polokalama ko eni koe kau mamonga
Oku fai pe is eha faahiga kkai oku ikai ke nau mnva ofa nau tolu pea toki ului atu leva kkai taemhino o pehe nau mau$$$ he moko2 pe tuku e taemhino kae oo gaue e $$$ ke tologa ho nima he oku mau e m ihe kkva koe mea pe mau hena koho ggau ulu he mole ho $$$$ pea toe mole age ai ho taimi mou ako aa kau taemhino
People who love gambling they will gamble anything that is comes their way greed breeds these type of people , they will sell their own mother for money to gamble so? Making money quick that’s what they think will let them in the game – watch out people there is no moral in these game ( MONEY ) is the RICH EASY -their target . Happy holiday everyone watch out !