• You invest money to projects promising high profits, recommend them to your friends and then you lose – the President of UOKiK consistently warns against alternative investments, which may prove to be fraud or pyramid-type incentive schemes.
• The President of the Office notifies the public prosecutor's office about the ventures that may involve alleged criminal offences. In recent months, he has provided information to investigators about 16 investment projects, such as cryptocurrency wallets, investment promissory notes and an offer of profits from the legalization of marijuana.

In recent months, the profitability of traditional forms of savings such as bank deposits or treasury bonds has significantly decreased. This is being used by fraudsters and dishonest entrepreneurs, tempting consumers to offer an alleged high profit from various alternative investments in non-standard goods or projects. Many of them promise earnings mainly based on soliciting more people to join the project, which is a typical feature of a pyramid-like incentive scheme.

“We have been consistently warning consumers against putting their money into unproven, unconventional projects. Last year, for example, we launched the "Check, Read, Ask” campaign, during which we advised us to scrutinise each offer thoroughly and not to believe in a quick profit without risk. When we identify suspicion of practices that violate the collective interests of consumers, we are taking action in the course of proceedings that often result in severe financial penalties. However, where there is a suspicion that a criminal offence has been committed, in particular fraud, law enforcement authorities do step in - we inform the prosecutor's office about such cases,” Tomasz Chróstny, the President of the Office of Competition and Consumer Protection, says.

For example, financial pyramid as a business model is qualified as a fraud crime (Article 286 of the Criminal Code) taking place in an organized manner. The fight against it is a matter for law enforcement authorities. Instead, the President of UOKiK may look into a pyramid-like incentive scheme that involves building a sales network. The consumer is solicited to participate in the "project" in the sales system in exchange for the promise of remuneration or other material benefits, which depend primarily on the recruitment of more people into the scheme. The organization, implementation and promotion of such schemes is prohibited by law as an unfair market practice. For such actions, the President of UOKiK may impose a fine of up to 10% of the company’s annual turnover.

Similarly, if an entrepreneur collects payments but does not intend to pay the promised profits, we are dealing with fraudsters that law enforcement authorities should deal with. These are often fake platforms or forex exchanges, for example. We also inform the prosecutor's office about phishing for login details or seizing control of a bank account. Often, these types of projects require consumers to make an initial deposit and then condition the payout on subsequent payments being made. However, if, for example, an entrepreneur misleads consumers as to the details of the offer, withhold information about the risk - it is a matter for the President of UOKiK.

In the last 8 months, the President of UOKiK has provided the prosecutor's office with 12 information about 16 so-called "investment projects", which may violate the provisions of criminal law. The Office conducts proceedings against some of them under its competence. Most of the promoters of these projects are based outside the EU, which means that it may be very difficult to recover the money invested.

“A number of the business models reported to the prosecutor's office capitalize on the ever-growing popularity of cryptocurrencies. They are used to create frauds, so-called pyramid schemes, and other unfair systems. When investing in systems based on cryptoassets, one needs to be aware of a possibility of losing money as a result of a virtual theft as well as other risks related to large speculative price changes, lack of general acceptance and use in criminal activities, inter alia in money laundering,” Tomasz Chróstny, the President of UOKiK, warns.

Cases reported to prosecutors - consumer, beware of these enterprises

1. Cloudtokenwallet.com web platform set up by CLOUD TECHNOLOGY & INVESTMENTS PTY LTD from Australia. Cloud Token is a mobile application that is a so-called cryptocurrency wallet, whose developers promise 6-12 percent profit per month for storing cryptocurrencies and additional revenue for recommending the system to friends. The case is being investigated by the Cybercrime Department of the Provincial Police Headquarters in Poznan under the supervision of the District Prosecutor's Office in Poznan (ref. No. PO III Ds.6.2021). The President of UOKiK has been conducting preliminary proceedings in the case.
2. Paraiba - an investment project of Unique Private Bank Limited of Comoros. According to information available at: paraiba.world, the company is involved in cryptocurrency and currency trading and arbitrage. Consumers pay a deposit - a minimum of $25 - and are promised revenue based on soliciting new users.  UOKiK has been conducting preliminary proceedings in the case.
3. Forex Trading Platforms: MarketPluse, Finantiko (already disabled), Marginelite, OctagonTrade. We have received an information that a consumer called the number listed on the MarketPluse website, was solicited to make a $250 deposit to be invested, and then he was offered to top up his account with further deposits. He refused and requested his money back, but he failed to recover it. Marginelite's operations are being investigated by the District Prosecutor's Office in Starogard Gdański (PR Ds.178.2021) and the District Prosecutor's Office in Bydgoszcz (PR Ds.471.2021). 
4. Fundusz Hipoteczny Yanok  (Yanok Mortgage Fund) with its registered office in Cracow, which issues so-called investment promissory notes. President of UOKiK Tomasz Chróstny has issued a warning in this case and charged the company with practices infringing collective consumer interests. Furthermore, non-recovery from borrowers is questionable, which could lead to consumers losing the money they have already invested. The District Prosecutor's Office in Cracow is investigating this case. The President of UOKiK also notified the General Inspector of Financial Information.
5. The investment platform https://fomo5k.io is registered by Domains By Proxy LLC from the USA. It is a blockchain technology project that aims to enable communities to earn within 100 days up to 5000 ethereum (ETH) cryptocurrency units (over USD 1.2 million) when investing 0.1 ETH. The funds come from new users, which may imply that this is a pyramid-like incentive scheme. The District Prosecutor's Office in Gdańsk initiated an investigation (ref. No. PO II Ds. 69.2020).
6. The trading platform https://torque.asia/ is a project organised by Torque Group Holdings Limited from the British Virgin Islands. It is to guarantee a profit of 0.15 to 0.45 per cent per day. To start investing you need to buy TORQ tokens, which cannot be traded on any cryptocurrency exchange. They are then to be exchanged for ETH cryptocurrency. The minimum investment amount is ETH 1 (approx. PLN 6 thousand according to the price of 3 February 2021) and the maximum amount is ETH 1000. Users earn a commission on products purchased by new, solicited referrals. The case is being investigated by the Cybercrime Department of the Provincial Police Headquarters in Wrocław, and supervised by the District Prosecutor's Office for Wrocław Krzyki-Wschód in Wrocław (ref. No. PR I Ds.1537.2020).
7. The web platform https://globalmaxis.com, organised by SystemDevCorporate LLC, located in Saint Vincent and the Grenadines, involving investing in the Forex market. Consumer reports indicate that the trader may illegally obtain data such as payment card numbers. Consumer harassment and impersonation for the purpose of causing financial harm, inter alia, are also likely to be involved 
8. The platform https://weedprofitsystem.com of SystemDevCorporate LLC from Saint Vincent and Grenadines. Its organizers promise a high profit due to the legalization of marijuana in Canada. The case is investigated by the Regional Prosecutor's Office in Bydgoszcz (ref. No. PO I Ds. 86.2020).
9. The platform https://advertisexchange.com/ registered by Hosting Concepts B.V. d/b/a Openprovider from the Netherlands. The user - in addition to advertising their business, e.g. blogs - can get money from recommending the platform to others. The case is investigated by the Regional Prosecutor's Office in Bydgoszcz (ref. No. PO I Ds. 85.2020).
10. Yourfitway.com platform is a project run by your Fit Way Network O√220; from Estonia and YOUR FIT WAY LTD from the United Kingdom. The mobile app, which encourages people to take 10,000 steps a day, also enables people to earn, inter alia, 25% on each payment made by a directly recommended person. The monthly subscription fee for the application is USD 10. Platform user, after purchasing the relevant licence, in the amount of: USD 100, 1,000 or 2,500 may become an affiliation partner and develop a structure to provide passive income to them. The case is being investigated by the District Prosecutor's Office of Gdańsk – Śródmieście in Gdańsk (ref. No. PR I Ds. 3905.2020). UOKiK has been conducting preliminary proceedings in the case as well.
11. The https://www.incruises.com web service is operated by INCRUISES INTERNATIONAL LLC from the USA and consists in the user paying USD 100 per cruise every month. The organiser is supposed to contribute with the same amount. After a year, the user may allocate 60% of the accumulated amount to the cruise, after 2 years – 70%, and after 5 years – 100%. In addition, revenue may be generated from recommendations made to other users who made purchases. The President of UOKiK has notified the prosecutor's office and is conducting preliminary proceedings in this case.
12. Investment project https://value.one organized by Value Company OÜ from Estonia. The entity conducted a fundraising by issuing VCO (Token Value) tokens during the Security Token Offering, the project was expected to yield a high profit percentage. UOKiK received a signal from the consumer, who bought 500 tokens for approx. PLN 20,000, and then lost contact with the company.

Hints and advices for consumers

• Never believe in fast, secure and high profit with no risk!
• Check offers very carefully, particularly watch out for any kinds of “novelties”, particularly those from unknown individuals or organizations.
• Do not trust unknown persons who publish clips from trips on-line, show their marvelous houses, publish printouts from bank accounts showing how much money they have earned in a simple and risk-free manner. These may be so-called “shills” who gain profits from investing in various types of projects.
• Do not trust the ads in social media – sometimes they involve paid services and inviting your friends to business projects that are in fact so-called pyramid-like incentive schemes.
• A reliable retailer provides their company details on the website – if they are not there, do not trust them. Pay attention to the company’s registered office. If it is registered outside the EU, it will be difficult to pursue claims against it.
• Check whether a given entrepreneur is not listed on the PFSA’s list of public warnings: https://www.knf.gov.pl/dla_konsumenta/ostrzezenia_publiczne.
• Read the documents you sign. They should be drawn up in Polish. Pay attention to linguistic errors. If there is something you do not understand, do not conclude a contract.
• Do not yield to pressure to make immediate transfers, especially to unknown accounts.
• Give yourself time to make a decision – if somebody tells you to make it immediately as the opportunity will not happen again, they probably want to cheat you.
• Do not share your personal data and data allowing you to log in to your bank to strangers.
• Do not install software and do not download applications from unknown sources – this way someone may take control of your computer or smartphone.
• If you suspect fraud, report it to the police.

Consumer support:

Phone: +48 801 440 220 or +48 22 290 89 16 – consumer helpline
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer advocates – in your town or district
European Consumer Centre: 22 55 60 600 – in cross-border issues involving EU countries, Norway, Iceland and the United Kingdom

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL