Offered easy money through an app? It could well be a trap- The New Indian Express

 Offered easy money through an app? It could well be a trap- The New Indian Express

Express News Service

CHENNAI: Multi-level marketing scams have donned an online avatar. Instead of pamphlets and posters, scammers use messages, audio and videos to trap people. For example, there are apps that promise high returns on investments. On registering, you get a referral code to share with your friends. And once they register, you get paid. Then they, in turn, invest and get referral codes to share.

These apps claim your investment goes towards a particular project, and the returns will be given to you. But that doesn’t always happen, explains Srikanth Lakshmanan, a researcher tracking digital payments and fraud. The scammers go to great lengths to make their companies appear legitimate. They pay the first level of people who join or sign up, and through them, attract others. But once more people join and invest, the returns stop, says Lakshmanan.

One such company used the name ‘World Bank’…

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