As the prevalence of online scams continues to rise, it has become increasingly difficult for individuals to distinguish between legitimate investment opportunities and fraudulent ones. The HoggPool scam, which garnered widespread attention and resulted in significant financial losses for investors, is a prime example of such a scheme.
HoggPool was a website that purported to use sophisticated trading algorithms to generate substantial returns for its customers. While the precise launch date of the platform remains unclear, the earliest online listing of HoggPool was documented on September 5th, 2022, as per Wayback Machine. The website was last active on February 26th, 2023.
HoggPool was heavily promoted on various social media platforms, including Facebook and Twitter, with promises of effortless and rapid profits for investors. Numerous websites also advertised HoggPool. A live promotion of HoggPool can still be found on some websites.
In light of the HoggPool scam, it is essential to understand the sequence of events leading up to it and the lessons that can be learned from it.
How does HoggPool operate?
HoggPool operates by offering investors the promise of an incredibly high rate of return – up to 2% per day – through a straightforward investment process. Users can invest any amount from $50 to $50,000, and many have invested their entire life savings into the scheme in the hopes of making quick profits.
However, it is important to note that such high rates of return are unrealistic and should be viewed with suspicion. In fact, the promise of consistent returns at such a level should be considered a red flag for any investment opportunity. It is important to thoroughly research and understand the risks of any investment before committing any funds.
In addition to their initial scam, the perpetrators went on to create WhatsApp groups, each with a supposed company consultant and supervisors who were unaware of the fraudulent activity. The remaining members were part of the Egyptian team who had paid money to invest in the company.
These scammers conducted daily meetings on WhatsApp, presenting documents and plans for the company’s future, as well as offering new investment opportunities. The aim was to convince citizens to invest larger amounts to secure greater benefits and profits. It is crucial to remain vigilant and skeptical of such investment opportunities and conduct thorough research before investing any money.
After each meeting, the HoggPool scammers scheduled celebrations for outstanding team leaders to organize and host dinner parties. The leaders were given instructions on what to do during the party. The managers even claimed that they had contracts with the Egyptian government and Vodafone Egypt and that their investment activities were supervised by the Egyptian Tax Authority. They also said that taxes were imposed on investors’ profits in their projects, which was later found to be untrue.
This was all part of a pyramid marketing scheme to attract new members to invest in the company. The scammers aimed to achieve their desired targets through fraud and deception, and once they had enough money, the company disappeared in a Ponzi-style manner.
Ponzi and pyramid schemes are devastating for investors who fall victim to them. They are built on lies and deceit and promise high returns with little to no risk. In a Ponzi scheme, the scammer uses new investors’ money to pay off earlier investors, creating an illusion of a successful investment. In a pyramid scheme, investors are recruited to bring in more investors, promising them a commission on each new recruit. Eventually, these schemes collapse, leaving most investors with nothing.
Investors who lose their life savings to these schemes may face legal repercussions and suffer from depression, anxiety, and other mental health issues. These schemes also erode trust in the financial system, which can have a negative impact on the economy as a whole. It is crucial to remain vigilant and skeptical of any investment opportunities and conduct thorough research before investing any money.
In the beginning of 2023, the HoggPool website suddenly vanished, leaving customers without any warning or support. The team behind HoggPool disappeared as well, taking with them the investments of thousands of unsuspecting customers. Some victims even faced threats from the scammers when they attempted to recover their money.
The aftermath of the HoggPool scam led to widespread anger and disappointment among its customers. Victims organized themselves online, forming groups on social media to share information and try to recover their lost investments. The Egyptian Financial Supervisory Authority (EFSA) launched an investigation into the HoggPool scam, promising to take legal action against those responsible.
In March 2023, the Egyptian police announced the arrests of several individuals suspected of being involved in the HoggPool scam.
Please contact us at sales@cryptoafricanow.com if you know of any alleged scam projects in Africa.
Francis Chinedu is a Nigerian-born digital marketing specialist, a bitcoin and blockchain enthusiast, and a YouTuber who enjoys covering events that empower young Africans, especially in technology.
