Bermuda Post

Wednesday, Dec 02, 2020

BPS warns of Pyramid Scams in Bermuda

BPS warns of Pyramid Scams in Bermuda

The Bermuda Police Service wishes to once again remind the public to be alert to individuals who may attempt to fraudulently obtain money from you, via what may appear to be legitimate means.
In recent times there has been an increase in these schemes disguised as investment opportunities.

The latest such scheme encourages individuals to invest in a bitcoin plan with promises of returns of as much as one hundred and thirty thousand dollars after sixty 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.

Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.

In fact, 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.
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