According to the Ministry of Interior’s statement, the suspects were caught with mobile phones, 1,135 SIM cards, a laptop, and various currencies amounting to EGP 1.27 million.
Investigations revealed that the criminal network was led by three foreign nationals currently residing in Egypt and linked to an international crime syndicate.
They were involved in online fraud and the misappropriation of citizens' funds under the pretence of investing them through an online platform called FBC.
The group collaborated with 11 individuals to establish a company in Cairo as a front for their illegal activities. They promoted the platform through social media and WhatsApp, offering financial commissions to recruiters.
The suspects lured victims by falsely claiming to invest their money in software development and digital marketing, promising high financial returns.
Moreover, they arranged for mobile phone lines registered with fake identities to activate digital wallets, which were used to receive and transfer the stolen funds.
The ministry said that once they had accumulated a significant amount of money, they shut down the platform and disappeared.
Following their arrest, the suspects confessed to the crime, and legal proceedings have been initiated against them.
The ministry warned the public against unverified online platforms that promise quick financial gains, as they may be fraudulent and result in financial losses.
Lure of easy money!
According to media reports, FBC presented itself as a legitimate investment and money-making platform, promising substantial earnings through seemingly simple activities like watching YouTube videos or completing online tasks.
The platform further asserted that it had a massive headquarters outside of Egypt and portrayed itself as a globally licensed entity operating since 2000. It also claimed to collaborate with the Egyptian government to combat unemployment.
With clever marketing tactics and fabricated testimonials, the platform created an illusion of legitimacy, drawing in thousands of desperate people seeking financial security.
One of FBC’s key aspects was its “pyramid-like referral system,” where users were encouraged to invite friends and family in exchange for higher returns, which were funded using money from newer investors.
Early investors were paid out quickly, creating a false sense of legitimacy. However, like most Ponzi schemes, the platform soon changed its policies, restricted withdrawals, and vanished, leaving later investors “empty-handed.”
Devastating reality for investors!
For many Egyptians, FBC represented a “once-in-a-lifetime opportunity” to escape financial hardship. Some victims, convinced of the platform’s credibility, went to extreme lengths to invest.
Some individuals sold their homes, liquidated assets, or took out loans to pour money into the platform.
One of the victims, a woman named Nancy from Minya, shared her harrowing experience in an interview with MBC Masr TV channel. She had invested EGP 11,200 (about $350) on the recommendation of a trusted acquaintance.
Like many others, she expected substantial returns, only to realize too late that she had fallen into a well-orchestrated scam.
Another victim, Mohamed Omar from Qalyubia, recounted to the Al Arabiya TV channel how he and his wife collectively invested EGP 22,000, believing FBC’s promises of effortless wealth.
However, he noticed red flags when the company suddenly imposed withdrawal restrictions, but it was too late by then.
Sudden collapse!
In recent days, FBC users have been unable to access their funds, and the platform has claimed it suffered a massive cyberattack.
However, cybersecurity experts quickly dismissed this claim, pointing to “a classic exit scam " in which the operators had likely stolen investor funds before shutting down the system.
Attempts to reach the platform’s representatives were in vain, as websites, customer service lines, and social media accounts were swiftly deactivated.
After the platform was shut down, hundreds of people filed official complaints, demanding an investigation and the return of their funds.
Legal actions
In the wake of FBC’s downfall, financial watchdogs and government authorities have issued urgent warnings against investing in unregulated platforms.
Despite ongoing legal proceedings, financial experts warn recovery may be impossible, as scam operators often utilize anonymous payment systems, such as digital wallets, to facilitate fraud and conceal their tracks.
The challenge is further compounded by the lack of precise records of financial transactions, making it even more challenging to trace and recover the stolen funds.
According to Mohammed Al-Harthi, a cybersecurity consultant, all registered users' data, including their platform credentials, has been leaked on the “dark web."
Speaking to Al Arabiya Business, Al-Harthi said the leaked data includes information stored on users’ devices, social media accounts, installed apps, and browsing history.
However, it remains unclear whether their financial data was also compromised.
Global online scams
The FBC scam is not an isolated case. Similar fraudulent schemes have surfaced worldwide, including the White Sands scam in 2022, which deceived millions of Egyptians, and HoggPool in 2023, which drained billions from victims.
Despite repeated warnings, many continue to fall prey to these scams due to economic desperation and a lack of financial literacy.
The FBC fiasco serves as a harsh reminder of the dangers hidden in the digital financial world.
It also represents a powerful warning against blindly trusting investment opportunities that appear too good to be true.
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