The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published consumer guidance on how to identify financial pyramid schemes and avoid becoming a victim of fraud, including a reminder that establishing or participating in such schemes is a criminal offence. The agency highlighted typical indicators such as requiring an upfront contribution, promising returns far above market levels, aggressive advertising (especially on social media), bonuses for recruiting new investors, lack of transparent information on the company’s activities and finances, and the absence of a licence to attract public deposits or permission to operate in the securities market. It reiterated that financial pyramids generate payouts only from new participants’ funds and noted that modern organisers use IT tools, psychological techniques, social networks and messaging apps to create an illusion of credibility. The guidance also described current disguises, including schemes presented as bookmaker-related “winning” bets supported by fake receipts via messengers and licence-free “investments” in online projects that close abruptly once enough money is collected, and cited Criminal Code Article 217, under which the maximum penalty is up to 12 years’ imprisonment with confiscation of property and a lifetime ban on holding certain positions or engaging in certain activities.

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