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12° Nicosia,
15 July, 2024
 

New pyramid scheme preys on Cypriots promising big profits

Authorities are investigating a company called Metamax as users report thousands lost in dubious investment platform

Newsroom

In a report by Hectoras Georgiou from Kathimerini, a new company named Metamax has recently popped up in Cyprus, promising substantial profits to users through its application. The app, which has gained widespread attention recently, requires users to watch and rate videos.

Users are asked to activate a package costing around $600, in return for which they receive $20 per month for three months simply by rating videos and ads. Additionally, those who invite others to join the platform earn a 10% commission from the new user’s activated package. For instance, if someone signs up through an invitation link and activates a $300 package, the inviter earns $30 as a commission.

Indicative of the scam nature of Metamax, the supposed CEO is actually an AI-generated avatar, and the company's listed address in Canada is merely a virtual office. The business model reveals a classic pyramid scheme, where new investors' money is used to pay earlier participants, perpetuating the cycle.

Many individuals have reported not receiving the promised returns, resulting in losses amounting to thousands of euros. User comments on various platforms corroborate these claims.

Complaints surge in Cyprus

Following numerous social media posts exposing the scheme, the Cyprus News Agency reported that provincial Criminal Investigation Departments (CIDs) have been instructed to handle the complaints related to Metamax. The police have been taking statements from affected individuals, which will be evaluated on a national scale as part of the ongoing investigation.

Several complaints have already been received by phone across different provinces. The police have urged complainants to come forward and officially report their cases.


Will victims get their money back?

Andreas Konstantinidis, Managed Services Director at Odyssey Cybersecurity, highlighted the importance of dealing with companies licensed by the relevant capital market authorities and thoroughly researching any investment opportunity. He identified Metamax as a clear Ponzi scheme, characterized by its high returns on investment and fraudulent nature.

When asked if cheated users could recover their money, Konstantinidis responded negatively, emphasizing that such schemes are illegal and unreliable.

Cyprus in the crosshairs

Metamax appears to be targeting individuals in countries including Afghanistan, Cyprus, and the Philippines, according to Google Trends data published by scamminder.com.

Philippine Securities and Exchange Commission warning

The Philippine Securities and Exchange Commission issued a statement drawing extensive attention to Metamax, cautioning the public about the company's activities and highlighting its fraudulent nature.

TAGS
Cyprus  |  scam  |  pyramid  |  crime

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