The Central Bank of Russia (CBR) has identified 146 financial pyramid schemes in only six months this year. Fraudsters often lure people with weak financial literacy into investment scams linked to cryptocurrencies or crypto mining operations.
Pyramid Schemes Thrive Amid Rising Investment Demand, Bank of Russia Says
The number of financial pyramid scams uncovered by the CBR between January and June 2021 is 1.5 times higher compared to the same time period last year, the regulator announced this week. The financial authority attributed the spike to increased activity of “unfair market participants” in the midst of ongoing economic recovery and increasing demand for investments in Russia.
Bank of Russia also emphasized that fraudsters take advantage of “people’s insufficient financial and digital literacy” convincing them to invest in projects associated…