Bangladesh Bank has cautioned the public against fraudulent investment schemes that promise abnormally high returns, often operating under the guise of pyramid or Ponzi schemes.
The central bank issued an official warning on Sunday, urging citizens to remain vigilant and avoid falling victim to such deceptive financial practices.
According to Bangladesh Bank’s Executive Director and spokesperson Arif Hossain Khan, several entities have previously engaged in unlawful financial activities by collecting deposits or investments without regulatory approval.
These organisations have lured investors by offering commissions through referral-based structures and promising exorbitant profits—tactics reminiscent of past fraudulent enterprises such as Jubok and Destiny.
The central bank further highlighted that some e-commerce platforms, like Evaly, had similarly exploited public trust by selling products at unsustainable discounts, ultimately leading to financial losses for consumers.
Pyramid schemes, multi-level marketing (MLM) scams, and Ponzi structures pose significant risks, as they function by using new investors' money to pay returns to earlier participants, rather than generating actual profits.
Such operations often collapse when they can no longer recruit new investors, leaving many with substantial financial losses.
Due to the inherent risks and previous instances of money laundering, authorities have taken legal action against similar fraudulent activities in the past.
Bangladesh Bank also reiterated that collecting deposits and operating banking services without a licence is a violation of the Bank Company Act, 1991, under Section 31(1).
Amid a resurgence of similar financial frauds, investigations have been initiated. In the interest of safeguarding the public, Bangladesh Bank has strongly advised citizens to refrain from engaging with such entities and to exercise heightened caution.
The central bank has also urged individuals and media outlets to report any information regarding these fraudulent schemes.
