Log In

Reset Password

Police warning on pyramid scheme

First Prev 1 2 Next Last
Scheme promotion (Image supplied)
Scheme promotion (Image supplied)

Residents were warned by police to be wary of a growing number of scams designed to look like investment opportunities.

A Bermuda Police Service spokesman said the public should be "alert to individuals who may attempt to fraudulently obtain money from you, via what may appear to be legitimate means“.

He explained: “The latest such scheme encourages individuals to invest in a bitcoin plan with promises of returns of as much as $130,000 after 60 days.

“This is actually yet another example of a pyramid scheme.

“Pyramid schemes usually entice new investors by offering higher returns than other investment vehicles, usually in the form of short-term returns that are either abnormally high or unusually consistent.”

The spokesman said that to see the high returns continue, the schemes need “an ever-increasing flow of money from new investors” to keep going.

He added: “The advertisement for one of the bitcoin investment plans now being circulated clearly states ’success is based on the number of participants’.

“These schemes are destined to collapse because the earnings, if any, are less than the payments to investors.

“Pyramid schemes are specifically mentioned in the Consumer Protection Act as being a criminal offence.

“Those promoting such schemes are reminded that the promise or forecast or even concealment of material facts which induces others to invest or deposit is a criminal offence and is punishable for a maximum of seven years’ imprisonment.”

You must be Registered or to post comment or to vote.

Published November 04, 2020 at 12:29 pm (Updated November 04, 2020 at 12:29 pm)

Police warning on pyramid scheme

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon