The Malta Financial Services Authority warned on Wednesday about individuals who are promoting alleged educational events in Malta on the subjects of forex, cryptocurrencies, stocks and other financial products. The events, known as multi-level marketing (MLM) schemes have also attempted to recruit Maltese residents.

The MFSA said that some MLMs may in fact be pyramid schemes in disguise. Pyramid schemes are scams sustained by the income generated through the recruitment of more members.

"Consumers should proceed with caution when approached by individuals promoting a recruitment-focused business model. Recruitment attempts may also come from close friends or family and prior research is highly advised before joining such ventures," the MFSA said. 

• Red flags that an MLM may be a pyramid scheme include:
• No real products or service;
• Highly confident promises of easy income, “guaranteed”;
• Subscription or monthly payment required;
• Pressure to recruit members.

Other warnings

The MFSA also warned that an entity ycalled Heptagon Investments which has an internet presence at https://heptagoninvestments.net and https://heptagoninvestments.com is using the details of an MFSA-licensed company Heptagon Capital Limited.

"Fraudsters are using the details and website contents of this genuine company in an effort to deceive the public," the authority said. 

"The public should therefore refrain from entering into any transactions or otherwise dealing with the false entity on any matters falling within the parameters of the Investment Services Act," the MFSA said. 

A similar warning was issued with regard to 

f Bitcode Prime which has an internet presence at https://bit-codeprime.com, https://bitcodeprime.site and other websites with similar names. From information available to the MFSA, Bitcode Prime claims to be a regulated Investment Firm.

The MFSA also issued a similar warning with regard to Bitcode Prime, which, it said, is neither a Maltese-registered company nor licensed or otherwise authorised by the MFSA to provide any investment services or other financial services which need to be licensed or authorised under Maltese law.

"Information available to the MFSA suggests that https://bit-codeprime.com is likely to be a scheme of dubious nature with a high risk of loss of money. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned company or individual on any matters," the company said.