Gold scheme, chit fund or "double your money" plan
An unregistered scheme promises high or doubled returns and pays early members from new members' money until it collapses.
Community reports: 0
How it works
- A neighbour, relative or local agent tells you about a gold scheme, chit fund or investment plan that doubles your money in a year or pays a high monthly return.
- Early members are paid on time, which builds trust, and you are encouraged to put in more and bring in friends and family.
- Once enough money is collected, payments are delayed with excuses, and then the office closes and the organisers disappear.
What it looks like
Example messages. Numbers and links are masked.
Put Rs 1 lakh today and get Rs 2 lakh in 12 months, 100% guaranteed. My cousin already got double. Only a few seats left this month. (said by an agent at home)
Pay Rs 5,000 a month in our gold plan and get 5% extra every month. See, Sharma ji got Rs 50,000 last month. Bring 2 friends and get a bonus.
Red flags
- Guaranteed doubling or very high monthly returns
- Early members paid on time to win trust
- Bonuses for bringing in new members
- No proper registration, receipts or office
- Pressure to join before seats run out
The one question to ask
Where does the extra money come from, if not from newer members joining?
Already paid or shared details?
Stop putting in more money and keep every receipt, passbook and message. Report the scheme at sachet.rbi.org.in and to your local police, and if you paid online, also file a complaint at cybercrime.gov.in.
1930 · cybercrime.gov.in
Also seen as
- Monthly gold savings plan from an unknown shop
- Unregistered chit fund run by a local group
- Crypto or forex plan with "guaranteed" returns