A new financial pyramid emerges in Russia every 48 hours – FinanceFeeds

The activity of crypto-currency fraud schemes is on the rise in Russia, which prompts calls for oversight of the segment.

Earlier this year, the Bank of Russia data showed that the losses from financial fraud have decreased in 2016, compared to 2015, but the number of financial pyramids remains high. The latest assessment of the activities of such fraudulent schemes adds to concerns.

Marat Safiulin, who heads the Federal Public-State Foundation for the Protection of Investor and Shareholder Rights, estimates that every 48 hours, a new financial pyramid emerges in Russia. Mr Safiulin was quoted by Banki.ru. He noted that the average life of a financial pyramid does not exceed three months. Usually after such a period of time, some key targets are reached and the fraudsters set up another entity in another Russian region.

Fraudulent schemes involving crypto-currencies are of particular concern for the expert who forecasts that they will spread further in the future. Most of them operate as “hype” businesses promising artificially high returns, he says.

More at: A new financial pyramid emerges in Russia every 48 hours – FinanceFeeds

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