BY JOHN HOUANIHAU
The Central Bank of Solomon Islands (CBSI) warns the public against the pyramid scheme operating as F-Mobile.
F-Mobile is not licensed, regulated or authorised by CBSI to collect deposit or offer any form of investment service in Solomon Islands, a CBSI statement yesterday said.
CBSI urges members of the public not to provide money or personal information to this entity or to any individual promoting it.
CBSI in the meantime wishes to alert the general public about the fraudulent operation identified as a pyramid scheme.
CBSI has received reports that F-Mobile is soliciting funds from members of the public with promises of unusually high and quick financial returns, primarily through the recruitment of new participants rather than through legitimate business activities, the statement said.
It further adds that such schemes are illegal and unsustainable, and they inevitably result in financial losses for most participants.
The public is strongly advised that pyramid schemes typically operate by, promising high returns with little or no risk, relying on the continuous recruitment of new members to pay earlier participants, require buy-in or subscription fees, lacking genuine underlying business activities or products that generate real income, collapsing once recruitment slows, leaving the majority of investors at a loss; and use testimonials and “success stories” to lure members.
The Central Bank further reminds the public to exercise caution and due diligence before engaging in any investment opportunity. If an offer sounds too good to be true, it is likely.
CBSI said anyone who has been approached by F-Mobile or similar schemes is encouraged to report the matter to them, Solomon Islands Financial Intelligence Unit (SIFIU) or the Royal Solomon Islands Police Force (RSIPF) for further investigation.
CBSI remains committed to safeguarding the financial system and protecting the public from fraudulent and misleading financial activities.
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