Warning on the trickery from “ghost” financial company

The Police recommended people need to be vigilant when borrowing money from unclear organisation.

According to HCM City Police, criminals established pages on social networks such as Zalo and Facebook with the name as financial companies (all are bogus companies) providing the advantages of quick and simple procedures and low interest rates that aimed at consumers in urgent need of money. Accordingly, customers just need to send a photo of their identification card and family register or driver license and monthly electricity bill via Zalo.

When customers borrow money, the subjects required to pay the risk insurance for the loan of VND 550,000/loan. When the borrower agrees to the loan terms, the subjects send fake credit contracts to the borrower via express delivery companies; at the same time, the staff of the courier company collect the risk insurance fee. After receiving the money, the scammer will block the customer and not disburse any loans.

From the above situation, HCM City Police recommended people should be cautious in using money lending services through social networking sites, apps and online. When there is demand to borrow money, people should choose a service provider with full legal information and carefully research the procedures, interest rates and fees to be paid to avoid falling into the trap of scammers.

Besides the above trick, according to the HCM City Police, there are many forums and social networks online running promotions and calling for participants to invest in “Wefinex.net” to raise capital and operating multi-level marketing illegally.

Wefinex allows players to place bets on the exchange and each player has 30 seconds to place bets and choose the trade amount. Place an order Increase (Blue) or Decrease (Red) at the current BTC/USD rate, after the next 30 seconds the result will be released. If the prediction is correct, the player will get 95% of the betting amount. Otherwise, they will lose all that money, this way of playing is similar to the game of “over-under”.

To expand the network, Wefinex also develops a network of participants by operating in the form of multi-level marketing, based on the sale of agency rights for $100 to participants. Agency rights are when a participant spends $100 USD, the participant will enjoy benefits such as trading commission and commission from the sale of agent rights in his system. Specifically, enjoying agency commission from F1 to F7 respectively $50, $25, $12.5, $6.25, $3.12, $1.56; trading commission from F1 to F7 is 1% to 0.0625% based on the trading volume of the downline system for a week.

The subjects created many websites with the same business model and the network development model like Wefinex, also known as the upgraded version (version 2), such as Raidenbo. Comand Bitono.io.

The Vietnam Competition and Consumer Authority under the Ministry of Industry and Trade determines Wefinex's operating model, network development and bonus payment showing signs of multi-level marketing mode, as prescribed in Decree 40/2018/ND-CP dated March 12, 2018 of the Government on managing business activities under multi-level marketing mode, but there is no unit or organisation named Wefinex that has submitted an application for granting a registration certificate of multi-level marketing activities to the Vietnam Competition and Consumer Authority; no unit or organisation named Wefinex has been granted a multi-level marketing certificate.

Therefore, people need to be careful and not to be enticed into investing in Wefinex.net, Raidenbo.com and Bitono.io websites.