Bengaluru: Busy probing 113 Ponzi scams, including the multi-crore I Monetary Advisory (IMA) scandal, the special officer and competent authority for IMA and other frauds has decided get to into the minds of those who invest in such schemes, despite the fact that scores of them go bust every year.
The competent authority has invited expression of interest from firms to carry out a survey for socio-economic and behavioural analysis of the Ponzi and pyramid financial frauds. The exercise will also look into the gullible investors’ background and age and how the scamsters win their trust.
Aditya Amlan Biswas, the competent authority, told TOI that Reserve Bank of India (RBI) and the chief secretary of Karnakata government have given their nod for the survey.
“After the survey, we will bring out a report, cautioning the public about Ponzi schemes and their effects. To do this, we should first hear out the victims and their experiences. When the report contains messages from the victims themselves, it will have deeper implications and reach more people. In the first phase of the survey, we will interact with the victims. The second phase will have the accused speaking about their deeds,” said Biswas.
The competent authority is presently probing 113 ponzi scams reported in different parts of the state, including big-time scandals like IMA.
Recalling a similar study done in the US during late 1990s, Biswas said that most victims of Ponzi schemes were either aged persons or young ones. “Aged persons were found to be over- confident, with a feeling that even if it’s a Ponzi scheme, they will pull out their investment before things turn bad.
On the other hand, youngsters, with an intention to earn more in a short time, trust such schemes. Also, youngsters think that making money is a game of dice and are ready to lose some money. Incidentally, after the report was made public, Ponzi schemes in and around the US declined drastically,” he said.
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