Page 6 - Unlicensed Digital Investment Schemes (UDIS)

Contents

Executive Summary ........................................................................ 5
1. Background ........................................................................... 7
2. ICTs and UDIS ......................................................................... 8
3. Impact of UDIS ........................................................................ 8
3.1 UDIS can harm the financial system .................................................. 8
3.2 Consumers from UDIS may be irreparable, impacting several generations ................ 9
3.3 UDIS can cause financial exclusion ................................................... 9
4. A survey of existing research/initiatives on unlicensed investment schemes ................ 10
5. Case studies by country (India, Kenya & Nigeria) .........................................11
5.1 Everyone is the boss, but no one is really in charge of UDIS. ........................... 12
5.2 Low rates of prosecution for UDIS and rare reimbursements for the consumer .......... 12
6. Outreach and awareness raising efforts with consumers .................................. 13
7. The dark web complicates the Ponzi picture ............................................ 14
7.1 Inclusion .......................................................................... 14
7.2 Monetization ...................................................................... 14
8. New technologies could be used to combat UDIS ........................................ 16
9. Why do victims continually fall for such obvious frauds? ................................. 16
10. Recommendations for addressing UDIS at national and international level ................. 17
Annex A : Questionnaire ................................................................... 19
Endnotes .................................................................................20

4 • Unlicensed Digital Investment Schemes (UDIS)