MLM scam growing in digital age, know how scammers rob

In today's digital era, online fraud cases are increasing rapidly. Especially multi-level marketing (MLM) scam has adopted a new way of cheating people on a large scale. The common people are implicated in this scheme by luring them to become rich quickly, but in fact it earns from the entry fees of new people, not from product selling. Now scammers are also using this model in the transactions of cryptocurrency, due to which people are losing their hard earned money.

How does MLM scam work?

The MLM scam is a fake business model, where people are added with great promises. This fraud process works in this way:

1. Breathtaking offer – Less hard work is lured to earn more money.
2. Network increase pressure – It is mandatory to add new people to earn money.
3. High membership fees – A huge amount is collected in the name of joining.
4. Fake products – The company claims to sell the product for showing, but the real earnings are from joining fees.
5. Finally loss – When new people stop connecting, the entire system crashes and people connected at the bottom lose their money.

Big MLM scam cases in India

Many big MLM scams have emerged in India, which ruined the lives of millions of people:

• eBIZ Scam – People were fraudulently cheated in fake networking schemes by cheating crores of rupees.
• Pearls Group Scam – Investors were misled by scam of about Rs 60,000 crore.
• QNet Scam – Thousands of investors suffered great economic losses, causing many families to be on the verge of ruin.

How to avoid this type of MLM scam?

If you are getting attracted by an offer to become rich quickly, then be cautious! By adopting these measures, you can save yourself:

Beware of the promises that earning “instant money”.
If the earnings depend on the recruitment of new people, it can be a scam.
Before putting money in any company, do a thorough investigation.
Invested money in approved investment plans by SEBI and RBI.

New ways of fraud are coming out in digital era, but with correct information and vigilance you can protect your money and future!