Effective network marketing strategies in Kazakhstan are also used by fraudsters, creating financial pyramids under the guise of MLM companies. In 2022 alone, more than 22 companies with signs of financial pyramids were uncovered in the country, with total losses from their activities amounting to $16.8 million.
Most often, scammers involve people in binary options and various bc data investment funds. The general essence of such pyramid scams is that the first contribution to join is usually small, and the promised "amount of payments" to participants is significant, which is what lures people.
We talked in detail about how financial scams work and how to identify them in the article Network Marketing VS Pyramids.
The government of Kazakhstan is actively fighting against such fraudulent schemes. In 2022, the country even launched an online service, “Baiqa, piramida!”, which allows Kazakhstanis to check any company for signs of a financial pyramid.
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