Approximately 138 bank cards were involved in dubious crowdfunding campaigns, with over 660,000 Kazakhstanis falling victim to pseudo-charitable schemes.
These revelations came to light during a recent meeting of the Interdepartmental Council on the Prevention of Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction. Chaired by Dmitry Malakhov at the Agency for Financial Monitoring of the Republic of Kazakhstan, the meeting highlighted the alarming extent of fraudulent activities.
“An estimated six billion tenge was raised through these campaigns, with around 33% (2 billion) exhibiting signs of fraud,” stated Malakhov.
He further emphasized the discovery of potential risks associated with collective fundraising efforts on social media platforms, which could be exploited for nefarious purposes.
Malakhov elaborated on how unscrupulous individuals misuse funds purportedly collected for charitable causes, diverting them towards personal expenses, property investments, gambling, and even luxury rentals abroad.
The participants at the meeting, including representatives from the AIFC, financial regulators, and second-tier banks, underscored the urgency of developing legislative measures to regulate crowdfunding activities.
Crowdfunding, an innovative fundraising method used to support various projects and start-ups, has increasingly become a target for exploitation by fraudulent actors.
