Press Release – Child Poverty Action Group Ng Tngata Microfinance is warning whnau to stay safe this Christmas and avoid pyramid schemes, many of which use cryptocurrency, including Gifting/Koha Circles that are promoted primarily to and by Mori and Pasifika families. Ng Tngata …
Ngā Tāngata Microfinance is warning whānau to stay safe this Christmas and avoid pyramid schemes, many of which use cryptocurrency, including ‘Gifting/Koha Circles’ that are promoted primarily to and by Māori and Pasifika families.
Ngā Tāngata Microfinance general manager Natalie Vincent says “Many of us feel pressured at Christmas time to provide lavish gifts and large feasts for friends and family. We need to remember to spend within our means, and avoid excessive debt. We also need to keep away from any scheme offering large returns in short timeframes.”
Whanau targeted by cryptocurrency pyramid schemes 18 Dec 2020 08:00 AM Photo: Pixabay.
Ngā Tāngata Microfinance is warning whānau against pyramid schemes promoted to Māori and Pasifika families.
General manager Natalie Vincent says schemes like gifting or koha circles may seem attractive to people who feel pressured at Christmas time to provide lavish gifts and large feasts for friends and family, but they are illegal.
Any investment scheme that derives its income from recruiting new members, as opposed to the sale of goods and services, is considered by law to be a pyramid scheme.
Ms Vincent says there is now a wave of pyramid schemes conducted with cryptocurrencies such as Bitcoin or Tron, which allow would-be scammers to operate in the shadows, independent of banks.
Ngā Tāngata Microfinance is warning whānau to stay safe this Christmas and avoid pyramid schemes, many of which use cryptocurrency, including ‘Gifting/Koha Circles’ that are promoted primarily to and by Māori and Pasifika families.
Ngā Tāngata Microfinance general manager Natalie Vincent says “Many of us feel pressured at Christmas time to provide lavish gifts and large feasts for friends and family. We need to remember to spend within our means, and avoid excessive debt. We also need to keep away from any scheme offering large returns in short timeframes.”
Vincent says people need to be aware that pyramid schemes including gifting/koha circles are illegal in New Zealand. Any investment scheme that derives its income from recruiting new members, as opposed to the sale of goods and services, is considered by law to be a pyramid scheme.