Why this matters
The National Securities and Stock Market Commission (NSSMC) (НКЦПФР) on December 19 approved a list of signs that indicate a financial pyramid. This is not an abstract regulatory document — it is a practical checklist that helps protect family savings amid rising risks and new fraud schemes.
Five key signs
- Entry payment — a mandatory condition of participation: a contribution in cash, virtual assets, or the purchase of a product without real economic value.
- Reward for mere participation — payments are promised not for actual work, but only for the contribution or for inviting new participants.
- Source of rewards — funds for payments are formed from the entry fees of new participants, not from business profits.
- Absence of real activity — there are no sales of goods or services that would generate income for payments.
- Dependence of payments on recruiting new participants — payment amounts are directly tied to the contributions of those recruited later.
"The NSSMC urges citizens to be cautious, verify information about investment offers, and use only trusted sources"
— Press service of the NSSMC
Practical steps for an investor
You don't need to be a financial analyst to safeguard your savings. Here are simple actions:
- Check whether the company is listed in the official registers of the NSSMC or other state registers.
- Analyze the income model: is there a real product/service, or does all profit depend on new contributions?
- Look for independent reviews and mentions in reputable sources — the press, professional forums, official statements from law enforcement agencies.
- Do not trust guarantees of high and stable returns without a verified business plan and financial statements.
- Consult a specialist or contact the regulator if you have doubts.
Context: example from Odesa
In February in Odesa, organizers of a scheme were exposed who cheated citizens out of around $200,000. Such a case is not isolated: the NSSMC also prepared an extended list of 10 signs of an unreliable investment project to give citizens tools for independent verification.
Conclusion
Remember: protecting savings is not just an individual matter. When Ukrainians verify information and decline dubious offers, we collectively reduce the space in which fraudsters can operate. The regulator's statements should become knowledge in every household — a simple but effective prevention of financial risks.
