Public informed to share information on HPZ tokens
Morung Express News
Dimapur | February 17
The State Cyber Crime Police Station has issued a cautioning against falling prey to monetary scams online. The cautionary note, relayed via the DIPR, came in the backdrop of a fraud case registered last year.
It related to a so called HPZ tokens— a website that has allegedly duped crores from thousands of people across the country. “The Modus Operandi of the scammers is to first lure the victims to invest in the company on the pretext of doubling their investment by an app called HPZ Token,” stated the release to the media.
It said that, initially, some of the investors received returns on their investments. They were then asked to introduce more investors as “downline” and in return the investors were given “commission” or a percentage of the investment made by each new investor.
Downline refers to members in the chain of investors that the consultant has recruited or has joined the organization after his/her enrolment. The downline represents income for the consultant, as they receive a percentage of their recruit’s sales.
Like the classic Ponzi scheme, its modus operandi was to get people to invest with the lure of doubling the investment in a short period of time. Before the advent of mobile apps, a ponzi scheme often appeared in the form of a private investment firm/company with seemingly legit legal documentation and front…
