The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has warned that participating in pyramid schemes almost always leads to the loss of invested funds. It said such schemes have no real economic basis and breach Kazakhstan’s law, and noted that while organisers now use digital tools, social media, psychological tactics and professional rhetoric, the core model remains unchanged because payments to earlier participants come from money paid by new investors rather than from genuine business activity. The agency highlighted several main warning signs. These include promises of guaranteed returns well above market levels, a requirement to recruit new participants, an inability to confirm that the organiser holds an agency licence, a lack of clear contractual responsibility for safeguarding funds, no financial disclosure, and promotion through messaging apps, social media and closed chats combined with requests to pay in cash or through electronic wallets rather than official banking channels. It also pointed to misleading labels such as "investment club" or "innovation fund", low initial entry amounts that encourage larger follow-on investments, and common disguises including fake bookmakers and fake investment offers in online projects or crypto startups. The agency added that this differs from network marketing, where income is generated from actual sales of goods or services. Where fraud is suspected, the agency urged citizens to contact the police and the Financial Monitoring Agency, submit a formal complaint as early as possible, and preserve correspondence, contracts, receipts and proof of transfers. It also noted that creating and promoting pyramid schemes is a criminal offence under Article 217 of Kazakhstan’s Criminal Code, punishable by confiscation of property, imprisonment for up to 12 years and a lifetime ban on certain activities.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan2026-05-28
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan warns on pyramid schemes and sets out key fraud indicators
The Agency for Regulation and Development of the Financial Market of Kazakhstan warned that pyramid schemes almost always cause financial losses and violate national law, noting that organisers increasingly use digital tools, social media and professional rhetoric while still paying earlier participants from new investors’ money. It listed red flags such as above‑market “guaranteed” returns, recruitment requirements, lack of licensing and disclosure, informal payment channels and misleading labels like “investment club” or “innovation fund”, and clarified that this differs from network marketing based on real sales. The agency urged citizens to report suspected fraud and stressed that creating or promoting pyramid schemes is a criminal offence under Article 217 of the Criminal Code, punishable by property confiscation, up to 12 years’ imprisonment and a lifetime ban on certain activities.