State hit by wave of ponzi pyramid scams

A new wave of Ponzi-style pyramid scams is sweeping across Himachal Pradesh, with fraudsters promising extraordinary investment returns and hefty referral bonuses to deceive unsuspecting residents. These schemes, aggressively promoted through social media, are becoming a major cyber threat in the hill state.

Scammers usually begin by offering unrealistic profits on small investments, assuring people that they can multiply their earnings simply by bringing in more participants. To build trust, they often display fake transaction screenshots or divert money from newly trapped victims to earlier recruits, creating an illusion of legitimacy. Once someone joins, the pressure starts. Victims are pushed to rope in friends and relatives, unknowingly becoming part of the recruitment chain that keeps the scheme afloat.

But the façade collapses quickly. No real payouts ever materialise, the referral dashboards freeze and the accounts or apps running the scheme are abruptly shut down. By then, the scammers have siphoned off lakhs.

Superintendent of Police (SP) Cybercrime, Rohit Malpani, said such cases are being reported with increasing frequency across Himachal Pradesh. He explained that scamsters actively scan social media behaviours to identify and target potential victims. “These pyramid schemes are completely bogus; there is no real product or service involved,” he noted. The cybercrime wing has been issuing regular advisories to alert the public and limit the spread of these frauds.

Malpani urged residents to immediately distrust any scheme that demands a joining fee or offers income solely through referrals. He emphasised the need to invest only in verified and regulated financial instruments. He further warned citizens not to click on suspicious links shared on social media, as these could result in financial fraud or identity theft.

People have also been advised not to share personal or banking information with anyone claiming to represent such schemes. “Offers promising unrealistic returns are designed to lure you in and once trapped, the financial loss and mental stress can be severe,” he said. The SP appealed to the public to report any cybercrime attempt or fraud immediately by calling the helpline 1930.