Be Cautious of Potential Pyramid Scheme

Consumers are reminded to be vigilant and tread carefully when engaging with traders/individuals on social media platforms advertising alluring ways to earn money; while barely disclosing any information about the scheme. This reminder comes as the Consumer Council of Fiji is investigating reports that consumers are being lured by a possible scheme which is mimicking the hallmarks of a pyramid-recruitment scheme.

Masquerading as a quick, high-return opportunity in the form of recruitment for renowned international trading website, the alleged scam entices people to join as an intern in a 5-tier scheme and earn an increased amount of commission at each level.

The operator, who has a physical store in Market Road, Nadi, advertises that people can join his company, initially as an intern and process 5 orders per day; no other material information is made available to the recruits. For processing these orders, consumers are paid a commission in addition to the annual commission. Apart from internship, consumers are offered to move to the next tier which requires an upfront payment. The process continues to level 5; with increased payment required for each level.

Whilst the investigations are still in the preliminary stages, CCoF Chief Executive Officer says that the Council is proactively issuing an alert to the general public so that they may ask the right questions and not fall victim to any potential scams.

“Our consumer tip-off led investigation is revealing that the trader in question is a registered business in Fiji however, when questioned, fails to reveal the specifics of its business operations such as why are the recruits required to pay a lump-sum payment, what is their (recruits) exact role and the modus operandi of the business. These can be potential red flags of a scam especially as recruits are required to pay a deposit. We are also reassuring consumers that the name of the business orchestrating this alleged scheme will be released soon,” stated Ms Shandil.

We are committed to equipping individuals with the knowledge and skills necessary to navigate complex scams which are rearing everyday. Such scams prey on people's desire for quick wealth, and by raising awareness, we aim to protect consumers from falling victim to these deceptive practices.

For any further clarifications and queries regarding such schemes, consumers are encouraged to call the Council on the toll-free number 155 or lodge a complaint using the Consumer Council of Fiji mobile app.

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