Residents up in arms as pyramid scheme collapses

Almost 500 people, many of whom are from Springs, have lost their savings in a pyramid scheme which collapsed on Tuesday.

The scheme is built on the concept of completing daily tasks on the app or the website to reap the rewards.

The invested funds can be withdrawn at the end of each week. Every evening quizzes were played and raffles to be won and recruiting people also came with its rewards.

On Tuesday afternoon users struggled to log in to the scheme’s website and web to track their investments.

Disgruntled investor Bathandwa Zungu from Selcourt told Springs Advertiser that when they tried to log their complaints to the manager on their WhatsApp group, he exited the group without a word.

She added that the scheme seemed genuine as they gave the participants reading material and video clips to familiarise themselves with how online financial gaming platforms work and how to make the most out of their earning potential.

“The scheme gave the feeling of being legitimate even though nobody took the time to research its legitimacy,” she added.

Participants felt the loss and are dealing with the consequences. Kgaogelo Marakalala says she is disappointed as she was planning to use the money for the renovations of her house and her children’s future.

“I used my children’s school fees to buy my way into the scheme,” she said.

Taupedi Manthata says he has no means to recoup the money as he used his salary to invest in the scheme.

“I felt drained and shocked the moment I found out I was scammed. I thought I covered all the basics of not being scammed,” he said.

Charles Marule laments his earnings and says he was hoping to pay off his debts and pave a better life for himself.

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“I felt like the world moved right from under me. I was hit with despair as it sank in that I had used all the money I had for the month.”

Tsakani SAPS station commander Colonel Goodall Khumbulani Mbatha is appealing to the community to be extra careful and alert during this festive season.

“This is that time of the year when people are going to reap from their year-long hardworking returns either in a form of goods or in cash.

“I am appealing to all groups to take safety precautions when sharing their cash. Should there be any threats or foresee dangers they may make police aware for proper and necessary arrangements to be in place to prevent any possible crime,” he said.