The Central Bank of Uruguay (BCU), warned that firms called Global Intergold, BLC (Business Leadership Community), and Gigg-os that advertise their services through social networks and different media, under the modality of training courses or events, are not registered in any way with the bank, nor do they have authorization to operate by the Superintendence of Financial Services.
In detail, the communication issued this week explains that theThese companies that call for investment or savings, promising returns on investment, “could involve fraudulent operations based on pyramid schemes, which lack financial sustainability.”
The BCU pointed out that through advertising (carried out on social networks using in certain cases the promotion or sponsorship of public figures as well as under the modality of training courses), various savings or investment offers are made (in physical gold, cryptocurrencies and unregistered securities), promising certain returns on investment.
“In this regard, it should be noted that the call to the general public to apply their savings can only be done through financial intermediation institutions authorized to take deposits in the market or as an issuer registered in the stock market registry,” says the communication.
Ponzi schemes
On the other hand, the BCU pointed out that, in the so-called “pyramid” scams, the alleged profits generated by the first investors, instead of being generated by the real returns on their investment, are obtained or generated by their own investments or from the money provided by other investors who are joining the business.
“When investors try to withdraw the money invested, they are usually evaded or invited to reinvest to avoid withdrawing the funds. This operation lacks any financial sustainability”, stated the regulatory authority.
recommendations
The BCU urged the public to be cautious around investment offers that present, in particular, the following characteristics:
– The people or companies that offer the investment or savings, as well as the instruments offered, are not registered with the Central Bank of Uruguay.
– High returns are promised with no associated risks or low risks.
– Additional benefits are granted for referencing or introducing new clients to the business or giving access to your network of contacts.
– They have the sponsorship and testimonials of public figures (frequently paid) that appeal to their personal or business experiences with the company.
Given this type of offer, it is recommended to carefully analyze the nature of the investment to be made and the risks associated with the profitability offered.
Likewise, it is suggested to the public that when investing, in order to find out if the company or the product offered is registered or has authorization to operate by the Superintendence of Financial Services of the BCU, consult the records available at your website.
