Investment & crypto

Ponzi and recruitment-driven schemes

New deposits fund earlier payouts, or earnings mainly depend on recruiting more participants.

Two people reviewing and writing on paper beside laptops

If you have one minute

Pause, then verify independently.

Cannot explain the source of profit

Before paying

Ask how the business generates returns

See verification steps →

If you paid or shared details

Stop reinvesting and recruiting

See response steps →

Start with these three signs

  • Cannot explain the source of profit
  • Recruitment rewards overshadow products
  • Pushes reinvestment of every payout

How the situation unfolds

  1. Contact

    Personal referrals, community schemes, or recruitment events.

  2. The lure

    Daily dividends and bonuses for inviting friends.

  3. The demand and outcome

    Early payouts resemble real profits, but payments may stop when fresh funds run short.

Verify these things before paying

  1. Ask how the business generates returns
  2. Verify products and the operator
  3. Do not rely on a friend's payout

Already engaged or paid?

  1. Stop reinvesting and recruiting
  2. Ask referred contacts to verify
  3. Report to police or the financial regulator

Contact your payment provider and local police promptly. The responsible institution must confirm whether a payment can be stopped, disputed or returned.

Keep these records

Return rules
Referral records
Payment history
Project advertising

Keep originals and organise working copies. Never give strangers verification codes, banking passwords, private keys or seed phrases.

Original references

This page summarises public prevention guidance to help recognise methods. It is not an enforcement conclusion about a particular incident. Check the source page for its original title. Procedures and reporting routes vary by jurisdiction. Compiled October 2026.