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How scammers have a field day in India

| Financial Frauds, investment scheme, Network Marketing - MLM News, Ponzi Scheme | 5 hours ago

With 41 rings and 1,610 active members, the fifth highest in the world, losses due to have shot up from $32 mn in 2006 to $870 mn in 2013.

It was in the ’90s that first fell prey to . The method involved luring people with a commission of a few million dollars for transferring billions of dollars to the account of a . The scam came to be popularly known as the 419 scam, after the section of the Nigerian Criminal Code which outlaws the practice. In 2014, the story of the Nigerian prince may be outdated, but the scammers are still around. According to the , “ have turned at-home internet users into unsuspecting accomplices. Investigators are calling it purchase order fraud, and the perpetrators are extremely skillful.”

One of the newest methods of the scammers involves duping companies, particularly in the export and import business, by hacking their emails, and obtaining information about their buyers. What follows are fake orders from the customers with 30-day credit. By the time the business house realises that the order was a prank to dupe it, it is invariably too late. About two months back, when an exporter from Rajasthan received a promotional email, he never thought clicking it would cost him nearly $1,000. The spam mail not only compromised his password but also corrupted his inbox. An unidentified malware, which worked in stealth, created filters that kept the exporter in the dark about the emails being sent out of his account. Sitting miles away, the scammers successfully diverted a payment of $1,000, which the exporter was to receive, to their bank account in the United Kingdom.

A widespread problem
“Reports of payment diversion are coming from almost all states. More than 100 complaints could have been registered so far,” says Rakshit Tandon, advisor, cybercrime redress cell of the Uttar Pradesh Police. Online financial frauds come in varied forms like auction, credit-debit card , check and lottery frauds, which are together known as 419 (advance-fee fraud) crimes. In India, there are 49 AFF scam rings with 1,610 active members, the fifth highest in the world, according to a report by Ultrascan Advanced Global Investigations released in July. In 2005, there were only three AFF rings with 79 active resident members. Active resident members stay in one country to dupe residents in another country – the basic modus- operandi for most fraudsters -so as to work in different geographies and jurisdictions, the report says. This apart, there are also a number of local rings that recruit poor people to perform tasks like opening a bank account or registering a company in the area of operations. India suffered financial losses of nearly $870 million on account of AFF frauds in 2013, the fourth highest in the world, up from $32 million in 2006.



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School of Hope children benefit from Health camp

| Amway India, Network Marketing - MLM News | 6 hours ago

(), the Corporate Social Responsibility (CSR) arm of , celebrated the ‘Universal Children’s Day’ with the children of School Of Hope today in Jamshedpur.

To make the day special for them, Amway Opportunity Foundation conducted a health checkup camp reinforcing its commitment to their wellbeing.

All 70 students of School of Hope also enjoyed fun filled magic show today.As part of Children’s Day celebration, AOF is organising nationwide fun filled events with the children of its partner NGOs under the Project Sunrise.

Speaking on the occasion, Diptarag Bhattacharjee, Vice President- Eastern Region, Amway India commented, “We have been working for the welfare of children since 1998 with a vision to help them become self-reliant.

Children’s Day gives us an opportunity to spread happiness to the lives of children’s day and create some sweet memories for them to cherish. I hope all the children of School of Hope enjoyed the magic show on the special occasion of Children’s Day.”

B. Shyamla Raju, Principal, School of Hope said, “Amway Opportunity Foundation has been celebrating Children’s day with our students for the past three years. All the students really enjoyed each and every moment of the day.


4 total views, 4 today

Srinjoy Bose arrested in financial scam

| Network Marketing - MLM News, Ponzi Scheme | 6 hours ago

An opposition national lawmaker was arrested Friday on suspicion of stealing funds from a multibillion-dollar that collapsed in eastern India, an official said.

The scam left hundreds of thousands of investors virtually penniless.

was arrested on charges of criminal conspiracy, stealing funds and deriving undue financial benefits, said Kanchan Prasad, a spokeswoman for the , India’s federal investigating agency.

Bose belongs to the All India Trinamool Congress, the governing party in West Bengal state but an opposition party at the federal level.

The scheme was run by the Saradha Group, a state-based consortium of private companies running collective investment plans. It reportedly collected around 300 billion rupees ($4 billion) from over 1.7 million depositors before it collapsed in April 2013.

Corruption is endemic in India. In September, powerful southern Indian politician Jayaram Jayalalitha was convicted of corruption and sentenced to four years in prison. She was accused of amassing 660 million rupees ($11 million) at a time when she was receiving a token 1 rupee as her monthly salary. She appealed the verdict and is free on bail.


5 total views, 5 today

Amway launches global new Satinique range in India

| Amway India, Network Marketing - MLM News | 6 hours ago

Amway India that launched its new range of products in hair conditioning, styling and scalp tonic category for the first time in India is mulling to start a health and beauty centre for this coastal city. At present, Amway, a leading direct selling FMCG company is having such centres in the state capital Bengaluru and Mysuru. These centres will offer specialised services on health and nutrition and beauty tips to users.

Continue reading »

5 total views, 5 today

Mumbai EOW wants sponsorship details about QNet

| Network Marketing - MLM News, qnet news | 6 hours ago

MUMBAI: The city economic offences wing () has written to the asking them to provide the details about the sponsorship of its tournament by QNet, a marketing firm and an accused in EOW case. The prize money in the tournament is $50,000.

An officer who is art of the investigation, said, “ is an accused firm in our case. We have written to the Association to find out the details about the sponsorship and the mode of payment made to them. The Association has organized Women’s tennis tournament and we have got the information that QNet is one of the sponsors in the program. We have to verify the QNet role.”

The matches are being played at R K Khanna Tennis Stadium, Africa Avenue, New Delhi. QNet is accused of cheating thousands of people pretending to be a marketing firm. Till date police have arrested 11 people in this case.

“Though they have shut their operations at many places to avoid arrests, the firm’s independent representatives (IRs)are still struggling to continue the chain to cheat people,” said another office. Police have frozen hundreds of accounts belonging to the firm and its IRs. As per police estimate the cheating amount is more than Rs 425 crore.

“We have made special investigation team and also invoked the stringent law, Maharashtra Protection of Interest of Depositors (MPID) act against the accused. There could be a series of arrests soon. Our teams are going through all the documents and will visit cities like Delhi and Bangalore to get more information about those operating the scheme,” he added.



8 total views, 8 today

Direct selling gets a desi makeover

| direct selling industry, Network Marketing - MLM News | 10 hours ago

Direct selling gets a desi makeover

With global companies facing challenges in the Indian market due to , domestic players are keen to cash in on the ₹10,000-crore opportunity.

Companies like , , , and Future Group’s Direct use technology to reach out to customers and sell directly through online channels.

5 total views, 5 today

Direct selling industry in party mode

| direct selling industry | November 21, 2014

Direct Selling Association of Ireland

parties are enjoying a surge in popularity, according to the of Ireland (). The trade body says about 4,000 people have signed up to become direct sellers over the past year, taking the total number to more than 20,000.

Parties, where self-employed direct sellers showcase products such as cosmetics, jewellery and homewares to a group gathered in a client’s home, now account for a fifth of total direct-selling revenue in Ireland, according to the DSAI, which represents 16 member companies including , , and .

Direct-selling parties “are becoming increasingly more mainstream”, says DSAI director general Lynda Mills.
The days of the stereotypical “Avon Lady” are gone (as is the company itself from Ireland). More than 5,000 direct sellers are men – a quarter of the total – while there are 8,800 people aged 50-plus selling products outside the traditional retail channel, the association says.

Although direct selling is typically a second or casual stream of income, about 13 per cent of direct sellers, or some 2,600 people, work full-time in the industry, which is estimated to be worth more than €50 million. That’s quite a lot of moisturisers and herbal supplements.

6 total views, 4 today

Kisan Vikas Patra relaunched to check Ponzi schemes

| investment scheme | November 21, 2014

Kisan Vikas Patra relaunched to check Ponzi schemes


With a view to raising the rate of domestic savings that are in decline, the government Tuesday re-launched the (KVP) designed to target the country’s poor.

“In the last 2-3 years, the savings rate in the country has declined from a record high of 36.8 per cent to below 30 per cent due to a slowdown in the economy. It is, therefore, necessary to encourage people to save more,” Finance Minister said at the launch here of the revamped KVP.

“There is an urgent need to raise savings in the country. These savings are then used for nation building,” he added.

Besides, KVPs would help poor gullible investors channelise their savings in trusted government scheme instead of where hard earned savings disappear, Jaitley said.

Available in the denominations of Rs.1,000, Rs.5,000, Rs.10,000 and Rs.50,000, the sum invested would be doubled in 100 months. The instrument has no upper limit for investment and can be encashed after a lock-in period of 30 months, IANS reported.

The KVP would be a bearer instrument without the name of the holder in the first phase, the finance minister said.

“This will be a bearer instrument just like currency and easy to encash,” he added.

The certificates can be issued in single or joint names and can be transferred from one person to any other person or persons, multiple times. Transfer facility will be available from one post office to another in India, as well as of nomination.

The certificate can also be pledged as security to avail loans from the banks, and in other cases of need as collateral security.

The scheme, launched earlier in !988 was very popular, while the percentage share of gross collections under KVP was in the range of 9 per cent to 29 per cent against the total collections received under all National Savings Schemes.

KVP gross collections in 2010-11 (scheme closed in November 2011) were Rs.21,631.16 crore.

8 total views, 6 today

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