The Uganda Police has warned Ugandans over Ponzi schemes that have increased in the market.
Police Spokesperson Fred Enanga issued the warning in a press release on December 11, 2023.
Enanga said that some of the schemes that are under investigation by CID are in coordination with the Capital Markets Authority.
He identified some of them as Veta Plan, Mall Fund, Great Wealth Youth Platform Africa, Cashmulla, Pio Crypto, Premium Clusters, Contract Kapital, and Pacs Capital Limited, among others.
“For instance, under Cashmulla, a user deposits Ugx 17,000 and is encouraged to invite other users and earn a commission from users under them, which is a classic pyramid scheme tactic,” Enanga said.
“The user cannot recover or withdraw their money,” Enanga added.
Enanga noted that this is another get-rich-quick pyramid scheme with the potential to defraud Ugandans.
He said that every year, different pyramid schemes change their company names during entry, offer attractive packages or rewards, and after gaining numbers, they freeze the accounts and defraud unsuspecting members of the public.
Enanga urged the public to always carry out sufficient due diligence and only enrol in investment opportunities regulated by the Capital Markets Authority or any other relevant regulator, adding that the public should seek investment advice from licenced investment advisors before making an investment decision in order to avoid being victims of investment fraud.
The Directorate of CID is still investigating circumstances under which several victims were defrauded to the tune of UGX 5 billion by Capital Chicken Limited in October this year, where victims were offered profits as returns through an online investment contract at an attractive interest rate of 40–60%.