Public informed to share information on HPZ tokens
Morung Express News
Dimapur | February 17
The State Cyber Crime Police Station has issued a cautioning against falling prey to monetary scams online. The cautionary note, relayed via the DIPR, came in the backdrop of a fraud case registered last year.
It related to a so called HPZ tokens— a website that has allegedly duped crores from thousands of people across the country. “The Modus Operandi of the scammers is to first lure the victims to invest in the company on the pretext of doubling their investment by an app called HPZ Token,” stated the release to the media.
It said that, initially, some of the investors received returns on their investments. They were then asked to introduce more investors as “downline” and in return the investors were given “commission” or a percentage of the investment made by each new investor.
Downline refers to members in the chain of investors that the consultant has recruited or has joined the organization after his/her enrolment. The downline represents income for the consultant, as they receive a percentage of their recruit’s sales.
Like the classic Ponzi scheme, its modus operandi was to get people to invest with the lure of doubling the investment in a short period of time. Before the advent of mobile apps, a ponzi scheme often appeared in the form of a private investment firm/company with seemingly legit legal documentation and front offices. It would then go about employing people as local executives or consultants, who would unwittingly take the job. The executives would then market the product i.e. double the return on any given amount. Meanwhile, they would go about employing “downlines” creating a long chain of investors.
It works on gaining trust at the initial phase – giving the earliest batch of investors their due – before decamping with the loot a few months down the line, while leaving the people the firm has employed to the mercy of the defrauded investors.
In the latest case, the medium of exchange or transaction was via the internet. The investors were asked to download and install an app from the HPZ Token website maintained by the alleged scammers.
According to the release, in Nagaland, the scam started around June 2021 and by August 2021, the payments/returns stopped coming and the website became inaccessible.
“This press release is being published for the public at large to volunteer and share information if any, with regard to the above companies/allegations. The Identity of the informant, if desired, will be kept Confidential. Information regarding this may kindly be shared at mobile number +91 8413980982,” it said.
It further reminded the public of the widespread cyber crimes committed in the country and in Nagaland. “The public is requested not to share bank details/OTPs with anyone and avoid the transfer of money to unknown persons/accounts even if they appear genuine without clear confirmation. Cyber Crime is a highly organized crime and we all need to remain vigilant,” it stated.
