The General Prosecutor's Office of Kazakhstan has released information about the main signs of a financial pyramid and provided warnings to avoid becoming a victim, as reported by Tengrinews.kz.
How to Recognize a Pyramid Scheme
Main Signs of a Financial Pyramid:
- Lack of a license or registration for the company;
- Aggressive promotion in the media;
- Vagueness in the description of the organization's activities;
- Imposition of conditions for purchasing goods or services.
Common Phrases Used in Financial Pyramids:
- high-profit business;
- guaranteed income;
- high-yield online project;
- online earnings;
- innovative project.
Key Slogans Used by Financial Pyramids:
- "Hurry to earn!"
- "Don't miss your chance!"
- "We’ll help you get out of debt"
- "Invest today!"
- "Were you denied by the bank? We can help!"
What Are the Penalties for Organizing and Promoting a Financial Pyramid?
Establishing a financial pyramid carries criminal liability. According to Article 217 of the Criminal Code of the Republic of Kazakhstan, this entails imprisonment for a term of five to twelve years with confiscation of property, as well as a lifetime ban on holding certain positions or engaging in specific activities.
Advertising a financial pyramid can result in a fine of up to two thousand monthly calculation indicators (MCI), community service for up to 600 hours, restriction of freedom for up to two years, or imprisonment for the same duration with confiscation of property (Article 217-1 of the Criminal Code of the Republic of Kazakhstan).
To avoid negative consequences and the risk of losing money, the General Prosecutor's Office strongly advises against participating in dubious financial schemes.
Where to Turn if You Become a Victim of a Financial Pyramid
If you suspect that you have encountered a financial pyramid, you should immediately contact the following organizations:
- Law enforcement agencies in your area;
- The Ministry of Internal Affairs;
- The Agency for Financial Monitoring;
- The Agency for Regulation and Development of the Financial Market.
This information was provided by the General Prosecutor's Office in response to the large number of Kazakh citizens who have approached the reception center with inquiries regarding financial pyramids. In total, according to their data, over 5,500 people visited the reception center of the General Prosecutor's Office in 2024.
Earlier, we reported that the Ministry of Internal Affairs warned Kazakh citizens about the risks of fraud involving artificial intelligence and targeted advertising.
