Guiding consumers since 2009

SA Reserve Bank investigates pyramid scheme

By Staff Writer

The South African Reserve Bank (SARB) has confirmed it is investigating Travel Ventures International (TVI) which is reportedly one of South Africa’s biggest pyramid schemes and has netted R265 million. "The Bank can confirm that there is an ongoing investigation into TVI and numerous small schemes operating under this banner. The investigations are in various stages of progress and the Bank is not in a position to comment on the details thereof,” said Hlengani Mathebula, group head: strategy and communications at SARB.

 

According to The Mercury SARB has seized documents and asset of TVI, which was deemed unlawful by the bank in 2011. The pyramid scheme is estimated to have more than 100 promoters and 1 million ‘investors’ taking part at any given time according to reports.

 

SARB explain that pyramid con-artists lure investors in by offering them a chance to make quick money by selling something. Usually you have to pay a joining fee, buy the product and then sell it. They tell you that the more people you get to sell for you, the more money you will make. It’s easy for the first people to introduce new members, but soon everyone is part of the scheme and it gets harder to find new members to join.

 

For example, the con-artist recruits six people who each pay a R100 fee. Each of those people has to recruit six people. There are now up to 36 people. Now, those 36 people each have to sign up six people – this equals 216, and by the time you have to get to level 10, you have to get 60 million people to join to keep the scheme going. This can never work warns SARB.

Recent Articles

Featured Are you in debt denial?

With debt levels increasing at 13% more than income levels, South Africans are more debt-stressed now than arguably ever before. This is iterated by the National Credit Regulator’s (NCR) report that nearly half of credit-active consumers in South Africa have damaged credit records. However, only a few seek the necessary help.

Why should you invest in a mutual bank?

Often when people think about banking, they always think about commercial banks. Mutual banks hardly come to mind, but these banks offer investment opportunities that are often overlooked.

 

The benefits of assessing investments regularly

It’s common practice to assess your personal finances annually. But how often should you check in with your investments? We found out from an industry expert when you should assess your investments and how to go about doing so.

Thinking of skipping your debit order payments? Don’t!

When you’re under financial strain, it’s easy to fall in the trap of skipping your payments thinking you’ll cover them next time. But the truth is there’s no guarantee that your next time will be different from your current. So, by postponing your payments you might be sabotaging yourself. Here’s why:

 

Deals

Aurora Spa 100-minute Treatment Special

Price: R449
When: Until 31 March
Where: Century City

Woodstock Grill and Tap Steak Thursdays

Price: R100
When: Thursdays
Where: Woodstock

KFC 5+5 Special

Price: R65
When: Until 25 February 2020
Where: Nationwide