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12° Nicosia,
11 December, 2024
 
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Financial education in Cyprus schools after Metamax scandal

More than 100 victims reported in Metamax fraud case

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The ongoing investigation into the Metamax investment pyramid scheme is causing growing alarm across Cyprus. Complaints to police departments have surpassed 100, with over €220,000 allegedly defrauded. Authorities anticipate that the number of complaints will continue to rise in the coming months.

Currently, three individuals, a 63-year-old, a 54-year-old, and a 48-year-old, are in custody. The 63-year-old and the 54-year-old are accused of leading Metamax operations in Cyprus. They allegedly persuaded victims to invest in an online platform that promised substantial and quick returns through a video rating system.

The case has international implications, with police and Interpol investigating the suspects' possible connections in Greece following complaints from Greek nationals. The 63-year-old reportedly claimed to earn €3,000 daily to attract new investors.

This situation brings back memories of similar investment schemes in Cyprus from around a decade ago, which also promised wealth and luxury but ended with significant financial losses for many. The collapse of those schemes led to stricter regulations, but issues of financial illiteracy persist.

Concerns about financial oversight and regulatory effectiveness are prominent. If Metamax had been a registered Cypriot company, entities like the Securities and Exchange Commission could have intervened earlier. However, Metamax’s operations were allegedly based in the Philippines, where the Securities and Exchange Commission shut it down.

Cypriot banks, tasked with monitoring financial transactions for suspicious activity, face challenges tracking large sums, particularly those involving cryptocurrencies. Reports indicate that victims were instructed to open accounts with an online cryptocurrency bank, Neho, before transferring funds to Metamax.

Andreas Konstantinidis of Odyssey CyberSecurity notes that the sophistication of financial fraud—employing technology such as AI avatars and cryptocurrencies—demands equally advanced countermeasures. He emphasizes the need for enhanced financial education to combat such schemes.

In response, President Christodoulides announced that financial literacy will be included in the Junior High School curriculum starting next year. While this is a positive step, experts like Professor Andreas Milidonis advocate for a dedicated financial education course, suggesting that a standalone course could better equip students to recognize and avoid financial fraud by September 2025.

[Summary of Pavlos Neophytos' original story in Greek published in Kathimerini's Cyprus edition]

TAGS
Cyprus  |  Metamax  |  economy  |  education

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