Hwange residents lose US$18 300 in fake crypto shares scam

14 Oct, 2021 - 00:10 0 Views
Hwange residents lose US$18 300 in fake crypto shares scam

The Chronicle

Sukulwenkosi Dube-Matutu, Chronicle Reporter
POLICE have arrested a fraudster for allegedly defrauding four Hwange residents US$18 300 in a fake crypto shares investment.

National police spokesperson, Assistant Commissioner Paul Nyathi said Farai Chingombe (38) tricked the residents into investing their money from January to August this year.

“I can confirm that we have arrested one Farai Chingombe in connection with a case of fraud. From January to August 2021, four Hwange residents were duped various amounts adding to US$18 300 after being asked to invest in a crypto shares’ investments. The matter was reported to the police leading to the arrest of Chingombe. Investigations are underway,” he said.

Asst Comm Nyathi urged members of the public to be wary of fraudsters inviting them to invest their hard-earned cash in ponzi schemes. He said the public needs to ensure that they engage in legitimate investment projects whose credibility they could ascertain.

Members of the public continue to be victims of ponzi schemes where they are tricked into investing money under the pretext that it will generate interest over a short period of time. A ponzi scheme is a fraudulent investment scam which generates returns for earlier investors with money taken from later investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers.

Both ponzi and pyramid schemes bottom out when the flood of new investors dries up and there isn’t enough money to go around. At that point, the schemes collapse.–@DubeMatutu

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