How Did Omega Pro Scam Work?
The OmegaPro scam was structured as a Ponzi or pyramid scheme, with money from new investors distributed to old investors, offering an illusion of profitability.
In a Ponzi scheme, potential victims are lured into the business by offering high returns on the initial small investment, forcing the victims to make higher investments. After the victims make higher investments, hoping to make some quick money, the scam either ceases their access or is deleted and vanishes altogether.
For example, a new joinee into a Ponzi scheme is first asked to make a $5 to $10 investment promising a 10X return. After the investment, the user’s account is updated with the profit and allowed to withdraw or partially withdraw.
Following this, the investment threshold increases dramatically from 10X to 100X and even further. The user who has withdrawn the initial amount, hoping to make a quick profit, often invests more than the threshold, and their account is accordingly reflected as having high profits.
However, when they try to withdraw the amount, they are asked to make further investments to take out their current profit. The cycle continues until the scam creators decide to run away with the money.
This was the case with OmegaPro, which offered an investment plan between $100 and $50,000.
