Essential Information for Kazakhstani Citizens to Avoid Financial Pyramid Schemes
Uncovering Modern Financial Scams: A Kazakhstan Perspective
In a digital age where scammers are constantly evolving, it's crucial to stay informed about the latest financial schemes, particularly in Kazakhstan. On May 5, 2025, experts at fingramota.kz shed light on the ongoing plight of "pyramid builders," who are adept at swindling unsuspecting citizens. Here's a lowdown on the tactics they employ and how to steer clear.
Streaming Scams
One of the most recent schemes uncovered in Almaty, April 2025, involves companies masquerading as Warner Bros, Roborock, and NFT+TRX. These entities lured investors by promising substantial profits from watching movie trailers. The project, structured across nine levels with an average investment of 225,000 tenge, was exclusively Bitcoin-based. Although it appears investors earned rewards for watching trailers and inviting new investors, the reality was far from it. Currently, an investigation is ongoing, with no exact numbers on victims or damage.
Crypto Cons
For many Kazakhs, cryptocurrency remains an enigma, often perceived as a "magic currency" for the elite like Elon Musk. This misunderstanding is exploited by scammers, who entice investors with promises of substantial earnings from new cryptocurrencies or mining farms. After gaining trust and collecting funds, the scammers disappear, using fake websites and fabricated currency movement to deceive victims.
A notable example is Finiko, which operated in Kazakhstan from 2019 to 2021, offering monthly returns of 20-30%. However, investors were required to purchase the company's internal currency using Bitcoin or Tether tokens. Subsequent investigations revealed that 12 Finiko investors lost 42 million tenge.
Eco-Frauds
With a rising concern for the environment, scammers have capitalized on the trend by creating "green" or "environmental" financial pyramids. Offering investments in solar panels, waste recycling, or novel fuel types, they use legitimate eco-projects to mask their pyramid scheme. With promises of astronomical returns, they emphasize the importance of ecology to gain legitimacy and grow their scheme.
Two years ago in Kazakhstan, a company supposedly focused on the "green economy" promised investors a 3000% annual return, defrauding 3000 Kazakhs of 259 million tenge.
Exclusive Investment Clubs
The allure of exclusivity often works in favor of scammers, who have adopted the model of closed "investment clubs" or "business communities." Despite dressing up the scheme, their methods follow the traditional financial pyramid structure, with the sole difference being the marketing approach.
For example, the "Millionaires' Club" in Kokchetav charged a membership fee of 100,000 tenge, promising members significant returns within a month. However, nobody managed to strike it rich. During investigations, 41 million tenge from over 3000 affected investors was found in the company's accounts, with a total damage estimated at 600 million tenge.
Gambling Pyramids
Modern financial pyramids increasingly present themselves as betting shops, tempting clients with promises of alleged guaranteed winnings. Unlike legitimate bookmakers, which are regulated and issue cash or electronic receipts for each bet, these illicit schemes operate without licenses and issue fake receipts through messengers. They also aggressively implement "affiliate programs," wherein earnings stem from attracting new participants rather than bet winnings.
Illegal online casinos often function on the platforms of these "betting" pyramids, violating Kazakhstan's "On Gambling Business" law. In Almaty, numerous betting shops – including PariMatch, VK Triumph, "Favorit," and PROFITBetting – had installed underground online casinos, in direct violation of the law.
Evading the Pyramid Trap
- Verify licenses and signs of fraud - Investigate on the official website of the Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market, the Agency of the Republic of Kazakhstan for Financial Monitoring, or through the AFM Baiqa Telegram bot.
- Skepticism about extravagant promises - Be wary of unrealistic returns (20-30% per month) and to-good-to-be-true guarantees of profits.
- Study the income model - Genuine businesses generate profits from selling goods or services, rather than investments or new clients. If payouts rely on inviting new participants, beware - it's a pyramid.
- Analyze the company's reputation - Research independent reviews, media coverage, and professional communities to verify information.
- Don't invest more than you're willing to lose - Steer clear of pledging property, loans, or other substantial assets in investment schemes.
- Avoid quick registrations through messengers – Legitimate investment companies operate on secure, established platforms.
- Carefully scrutinize contracts – Ensure the contract outlines clear terms, elaborates on income, and outlines force majeure cases and other essential details. Seek legal counsel to ensure your safety and safeguard your funds.
- Don't let pressure tactics influence your decisions – Legitimate companies never rush decisions or exert pressure on investors.
[1]: Enrichment Data: "Recognize rapid growth of scams: Cryptocurrency scams, including pyramid schemes, have experienced a steep rise globally since mid-2023, affecting users in Kazakhstan as well. Fraudsters exploit both crypto and traditional payment platforms."[2]: Enrichment Data: "With inflation stressing the financial needs of retirees and vulnerable populations in Kazakhstan, education about common fraud tactics is crucial."[5]: Enrichment Data: "Utilize fraud detection technologies: Companies like Chainalysis provide AI-powered real-time fraud detection tools that help exchanges and institutions prevent scams and protect users."
I, as a concerned citizen, have learned about the rising cases of cryptocurrency scams like pyramid schemes in Kazakhstan due to the rapid growth of such activities globally since mid-2023. I have also come to understand the significance of educating retirees and vulnerable populations about common financial scams. To safeguard my personal-finance, I have started investigating the legitimacy of companies involved in investing and financial schemes, particularly in Kazakhstan, by studying their income models, analyzing their reputation, and verifying their licenses. I have also started using fraud detection technologies to help protect myself from potential scams.
