Scammers launch a new version of Tiger Agriculture within days of the FSCA warning people against the scheme.
Last Friday (6 November), the Financial Sector Conduct Authority (FSCA) issued a warning against Tiger Agriculture, a pyramid scheme promoted on social media that offers huge returns when people buy seedlings that are supposedly grown to mature plants and then sold.
On Sunday (8 November), the team leaders of the Tiger scheme started promoting Farm Home Stead, an exact replica of the scheme, but based on farm animals instead of plants.
The new scam uses the exact same website layout, and simply replaced the pictures of plants with pictures of cows, pigs and chickens.
On Wednesday (11 November), a Tiger Agriculture Facebook group announced the launch of Ford Car Rentals, also using the exact same website layout as Tiger Agriculture and Farm Home Stead.
“New baby just landed,” it said about Ford Car Rentals, sporting pictures of vehicles where the plants and farm animals used to be.
The sales pitch and modus operandi of the schemes are all the same. People are invited to join small groups of investors to invest in seedlings/animals/cars, and entice others to join too.
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Impossible returns
Tiger Agriculture says on its website that its internet-based sharing economy model allows small farmers and other people to adopt seedlings and share in the profits.
However, the profits seem impossible. It promised that investing R820 in strawberry plants would yield a return of R42.64 per day for a period of 48 days – for a total return of R2 046.
That equates to a massive 250% over 48 days.
People are promised more money in the form of commissions if they recruit new members, which led to a barrage of advertisements on social media by people who were already involved in the scheme. It involves a standard sign-up form with a code to identify the recruiter for the purpose of allocating their commissions, with everyone looking to get 10 members onto their team.
The FSCA said in its warning that it had come to its attention that Tiger Agriculture may be unlawfully offering members of the public investment into agricultural products, offering profitable returns of up to 257% per month upon maturity of the agricultural products.
“Tiger Agriculture uses referrals and videos on YouTube, TikTok, its website and Facebook (social media platforms) to solicit investment from members of the public into its scheme.”
Without commenting on the business of Tiger Agriculture, the FSCA pointed out that Tiger Agriculture is “not authorised to render any financial services related business in terms of any financial sector law”.
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Failing
By the time the FSCA took action, the Tiger Agriculture scheme was already failing. Many victims already realised they had lost their money.
“I recharged last week Thursday but the money has not reflected yet,” writes one unhappy investor. “I sent proof of payment but still nothing. My team leader is not responding.”
Another also realised something was amiss: “I am so worried. My R2 100, my gosh. Even the manager isn’t replying to my messages. I don’t know what to do now.”
A more experienced ‘investor’ had some good advice for those complaining that they have not received their daily returns. “I have been in these platforms for years now. There is a time to join and a time to leave,” she wrote.
“They only last four to six months. It is already overdue. That’s why you see specials. That’s huge red flags. They are collecting and [I] am sure [by] Monday it’s done,” she warned.
In the comments of one Facebook post it was interesting to read a prospective investor complaining that he had to open a different bank account to invest, because Capitec Bank blocked payment to Tiger Agriculture – because the bank “thinks it is a scam”.
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South Africans continue to fall for these scams
It seems no amount of warnings, nor common sense, make a difference. South Africans still fall for investment scams they should recognise as fake.
Apart from being promoted to the same people on the same social media platforms of the failed Tiger Agriculture scheme, the new Farm Home Stead offers returns that are impossible to achieve.
For instance, it promises a daily return of R1 110 for 55 days – more than R61 000 in total – when an investor buys a cow for R18 500.
Everybody should know that it is impossible to make a return of 330% in less than two months.
And what does a R4 600 donkey do to earn an investor R243 per day, after whatever it costs to feed and care for it?
Farm Home Stead even offers an investment in a bird, illustrated by a picture of a common house sparrow. This mossie is rumoured to earn R6 per day for 40 days on an investment of R120, for a cool return of 100%.
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Invest in a dog or a sparrow?
Source: Home Stead Farm website
The South African Banking Risk Information Centre (Sabric) warns people against Ponzi and pyramid schemes.
“Both schemes see returns generated for earlier investors through revenue paid by new investors, rather than from legitimate investments or business activities,” it says.
“At the point where there are more existing investors than new investors, the scheme collapses and all monies invested are lost. This type of fraud is perpetrated when an ‘investor’ lures their victim by guaranteeing high profits that promise little or no financial risk
“In most instances the investor will be vague about the nature of the investment but will stress the rate of return,” Sabric warns, with little effect.
It also says that a warning sign is when promoters hype their high-level connections. Tiger Agriculture claimed it worked with the Department of Agriculture, Land Reform and Rural Development, with some of the “investors” even noting that the claim was bogus.
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Cars
The Ford Car Rentals scam blatantly uses the Ford logo. It seems to make no effort to hide the fact that it is a Ponzi scheme.
It offers different buy-in amounts, starting at R110, which will provide an income of R22 per day for 50 days. That works out to 1 000% over 50 days.
It does not try to explain where the money comes from.
The registration process, the website and registration codes are exactly the same as those used by Tiger Agriculture and Farm Home Stead. Another similarity is that investors are warned to withdraw their income every day, or it will be lost.
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No more money …
Meanwhile, the anguish among Tiger Agriculture victims continues as the scam has crashed.
Source: Tiger Agriculture website
This article was republished from Moneyweb. Read the original here.
