The rise of online scams has made it more challenging for people to discern legitimate investment opportunities from fraudulent ones. One such fraudulent scheme that has made headlines is the HoggPool scam, which surprised many investors and left them with significant financial losses.
We’ll take you through the timeline of events leading up to the HoggPool scam and the lessons we can learn from it.
What is HoggPool?
HoggPool was a website that claimed to use advanced trading algorithms to generate high customer returns.
While the exact launch date for the platform is unknown, the first listing of Hoogpool online was on September 5th, 2022, as per Wayback Machine, and it was last seen online on February 26th, 2023.
It was aggressively marketed on social media platforms such as Facebook and Twitter, promising quick and easy profits for investors. Many websites promoted it as well, here’s an example of a still online promotion of Hoggpool.
How Does HoggPool Work?
HoggPool promised to deliver returns of up to 2% per day, which is an absurdly high rate of return for any investment scheme.
The investment process was simple, and users could invest any amount from $50 up to $50,000. Despite red flags, many people invested their life savings into HoggPool, hoping to make quick profits.
The scammers did not stop there, as they created groups through the WhatsApp application, each group containing a person claiming to be a consultant for the company and supervisors of the company present in the group who were unaware of the fraud that would occur, and the rest were members of the Egyptian team who paid money to the company for investment purposes.
The scammers held daily meetings via the WhatsApp application in which they presented the papers of the company, and presented the company’s plans for the future, and offered new investment offers to convince citizens to invest larger amounts to obtain higher benefits and profits for investors.
At the end of each meeting for the company, they scheduled a celebration for each outstanding team leader to organize and hold dinner parties for the company on the ground, with the team leader attending with instructions from the company on what to do during the party.
The managers claimed that they had signed a contract with the Egyptian government and Vodafone Egypt, and claimed that all their investment activities in their projects were supervised by the Egyptian government and the Egyptian Tax Authority and that there were taxes imposed on the withdrawal of investors’ profits in those projects, which later turned out to be untrue.
The pyramid scheme
The goal of all this was to attract new members to invest in the company through network or pyramid marketing to achieve the desired target in the fraud and scam process by Hoggpool, and then the company disappeared after completing their fraudulent scheme in a Ponzi-style manner.
Ponzi schemes and pyramid schemes are fraudulent investment schemes that have duped unsuspecting investors for decades. These schemes are often promoted as legitimate investment opportunities, promising high returns with little to no risk. However, the truth is that these schemes are built on a foundation of lies and deceit, and they have a devastating impact on the investors who fall victim to them.
The primary reason why ponzi schemes and pyramid schemes are so harmful to investors is that they are designed to collapse. In a ponzi scheme, the fraudster uses money from new investors to pay off earlier investors, creating the illusion of a successful investment. In a pyramid scheme, investors are recruited to bring in more investors, with the promise of earning a commission on each new recruit. These schemes are unsustainable, and eventually, they will collapse, leaving most investors with nothing.
Investors who fall victim to these schemes often lose their life savings, and in some cases, their homes and businesses. They may also face legal repercussions if they were involved in the promotion of the scheme. The psychological impact of losing money in a ponzi or pyramid scheme can also be devastating, leading to depression, anxiety, and other mental health issues.
Another reason why these schemes are so harmful is that they erode trust in the financial system. When investors lose faith in legitimate investment opportunities, they may be less likely to invest in the future, which can have a negative impact on the economy as a whole.
Hoggpool Goes Offline
In early 2023, the HoggPool website disappeared without warning, leaving many customers needing clarification and support.
The team behind HoggPool vanished, taking with them the investments made by thousands of unsuspecting customers. Some even reported being threatened by the scammers when they tried to recover their money.
The HoggPool scam caused widespread anger and disillusionment among its customers. The scam victims started to organize 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 the perpetrators.
In March 2023, the Egyptian police announced the arrest of several individuals suspected of being involved in the HoggPool scam.
Reports stated that the suspects were part of an international criminal network that operated across multiple countries. The police recovered some of the stolen funds and returned them to the victims of the scam.
Lessons Learned from the Hoggpool Scam
The HoggPool scam is a cautionary tale about the dangers of fraudulent online investment schemes. Despite the efforts of law enforcement agencies and regulatory authorities, online fraud remains a pervasive threat in today’s digital world.
By staying vigilant, researching, and investing responsibly, you can protect yourself from falling victim to the next HoggPool scam.
Here are some of the lessons we can learn from the Hoggpool incident:
- Be cautious about investing in schemes that promise high rates of return. If it sounds too good to be true, it probably is.
- Research the company and its founders before investing. Look for information about the company’s history, management team, and financial performance.
- Use trusted investment platforms that are regulated by government authorities. These platforms are more likely to be legitimate and offer better protections for investors.
- Only invest what you can afford to lose. Always have a backup plan if your investment does not perform as expected.