BBC Africa uncovers Crowd1
In a new investigation by BBC Africa Eye, a global pyramid scam, run from Europe, that is using smartphones to cheat ordinary people across Africa, Asia, and Latin America has been exposed.
Crowd1 describes itself as “the fastest growing crowd marketing company in the world” and displays videos from social media which show members buying new cars and enjoying luxury holidays.
Crowd1 claims you can become a millionaire by promoting and selling a series of exciting digital products to your network. Using nothing but your smartphone.
These claims have persuaded thousands of people across Africa to hand over the 99 Euros that buys an entry-level membership to Crowd1.
But a six-month investigation by BBC Africa Eye reveals that, behind the slick marketing, Crowd1 is peddling a range of bogus products and false promises to cover an old-fashioned pyramid scheme based on recruitment.
The BBC has found that the recruitment of new members is heavily incentivised by Crowd1.
For instance, in its online webinars and events, members are encouraged to sign up their families, their Facebook friends, and the people they know from church. Successful recruiters earn a commission for bringing in new members, and – as with a classic pyramid scheme – for any additional people brought into Crowd1 by those recruited.
The scheme appears to have made a fortune for a handful of European scammers, many of them Swedish. But it has left behind a trail of debt and poverty in countries including South Africa, Kenya and Nigeria.
The BBC documentary, “Unmasking the Pyramid Kings”, includes shocking testimony from a woman in South Africa who spent her entire life savings on Crowd1 in the belief that she was buying “shares” in a business that would pay out a “salary.”
Africa Eye also spoke to Samtos, a young man in Lagos, Nigeria. Samtos says that when the Covid19 lockdown hit Nigeria, he was concerned about how to earn an income and was “sweet-talked” into joining Crowd1 by a friend. Samtos told the BBC that the scammers are in Europe “enjoying everything they are gathering from poor people.”
In its reaction, Crowd1 told the BBC that it is not a scam or a pyramid scheme and does not break any South African law. They said it is a legitimate network-marketing company that offers products to its members and enables them to earn money by marketing those products.
Crowd1 does not make money from recruitment, they insist, but only from these sales. Crowd1 also stressed that all its products are genuine.