Syndicates are targeting Zimbabwean users of mobile money service EcoCash with pyramid schemes, the telecommunications firm Econet Wireless has revealed.
The telco, which offers EcoCash, says it has received reports of users of the service being targeted with lower level Ponzi schemes, in which they are promised huge returns for small investments.
Econet says potential victims are asked to deposit $5 into each account of about five existing members. A further $5 in administration fees is also required.
Promises of returns are made based on the number of additional members who join the scheme.
Company officials, though, have said only a few benefit from these schemes, despite contributions made by many people.
“Econet advises customers against participating in pyramid money schemes. Econet will not be held liable for any losses incurred from such schemes,” the company has said in a statement sent to subscribers on the weekend.
EcoCash, which has enlisted local banks and supermarkets as agents, has approximately 2 million subscribers, according to Econet spokesperson, Rangarirai Mberi.
"Econet Wireless has enabled nearly two million Zimbabweans, the majority of whom did not have bank accounts, to have access to basic financial services through EcoCash,"he said last month.
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