Certified cryptocurrency expert Alex Sudadze says the most effective way to combat financial pyramid schemes is through public education and information campaigns, with the National Bank of Georgia playing a key role. He argues that state institutions should do more to raise financial awareness and help people identify potential scams before they become victims.
“My recommendation is for state institutions to conduct more educational and informational campaigns. First of all, this concerns the National Bank, which people trust to some extent,” Sudadze said on TV-program Business Morning. He noted that governments in some African countries had previously used public awareness campaigns to expose fraudulent schemes, arguing that similar efforts could help Georgian consumers recognize the risks associated with financial pyramids.
Sudadze also described what he considers common characteristics of such schemes. According to the expert, the organizations often monitor countries for vulnerable groups of potential investors. “They have teams of people whom they call analysts. These scouts enter a country and monitor it online. If there is a vulnerable population – people with significant debt and a state that is not financially very strong – they identify that opportunity,” he said.
The comments come after an investigation was launched on September 5 into the activities of the so-called TSQ Investment Group. The investigation concerns alleged illegal entrepreneurial activity and was initiated following a referral from the National Bank of Georgia. Sudadze said stronger financial education could help people identify similar schemes and avoid potential financial losses.
