Authorities Flag 2 Major Financial Bodies Warning Public Against Social Media Scams

Financial authorities in Mauritius have issued a joint alert following a sharp rise in unregulated investment schemes promising “unrealistic” returns through social media and informal channels. The Bank of Mauritius (BoM) and the Financial Services Commission (FSC) have urged the public to exercise extreme caution as scammers increasingly target citizens with high-yield products, particularly in the volatile virtual assets and cryptocurrency sectors.

Spotting the Red Flags

Regulators have identified several “warning signals” designed to help consumers spot potential fraud before parting with their money.

According to the joint statement, suspicious schemes often share common characteristics:

• Guaranteed High Returns: Promises of excessive profits within a very short timeframe.
• Aggressive Sales Tactics: High-pressure maneuvers to force immediate decisions.
• Untraceable Payments: Requirements to use unusual or difficult-to-track payment methods.
• Recruitment Focus: Schemes that reward investors primarily for bringing in new members through commissions.
• Lack of Transparency: Vague details regarding how the investment actually generates profit.

The Rise of Digital Scams

The BoM and FSC noted that many of these operations lack a physical presence and exist solely on social media.

The authorities also highlighted a growing trend of “influencers” promoting seminars and training courses specifically designed to lure in new investors.

Verification is Key

Before committing any funds, the public is strongly advised to verify the credentials of any individual or entity.

The regulators maintain official registries on their respective websites to confirm whether a provider is duly licensed or registered.

“Consumers are encouraged to seek advice and understand the associated risks,” the regulators stated, adding that any suspicious financial activity should be reported to the authorities immediately.

Source: Defi Media