Pyramid scheme-style ‘investment app’ scamming most vulnerable during COVID pandemic
Kate was reluctant to sign up to a new app that claimed to be an investment opportunity.
- The first people to sign up make money so they encourage others to join
- Police say the apps are just a modern version of pyramid schemes
- They are often run by overseas groups making recovery of the money difficult
But family members kept telling her how much “money” they were making from it.
“So when somebody comes to you with that type of information, you’ll be like, ‘Oh, man, this is true. Let me give it a shot’,” she said.
The app called Hope Business asked people to pay money into an account to enable them to earn money back. It is no longer available for download.
Kate — not her real name — said the app offered financial rewards for playing games.
Things got more tempting when the app announced a 12-day promotion that rewarded people who paid or “topped up” large amounts of…