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A digital platform in Algeria, known as OCM, lured thousands of people with promises of high returns, but victims later said it was a Ponzi scheme.
A Ponzi scheme is a type of investment fraud where the operator pays “returns” to earlier investors using money from newer investors, not from real profits.
People reported that after depositing money and receiving early profits, the platform cut off communication, closed its offices, and disappeared, prompting calls for an investigation and recovery of funds.
The OCM platform scandal erupted after a large number of victims turned to social media, revealing they had been defrauded after depositing varying sums of money before all communication with the platform suddenly ceased.
One of the victims, identified as Farid, said he was aware of the risks associated with such platforms, but he was drawn in by the quick profits that are usually offered in the early stages. He added that this time he fell victim to an obvious scam.
Other victims told Al Arabiya that the platform was promoted as a branch of an American company seeking to invest in Algeria, which boosted its credibility among many people, especially after it opened physical offices inside the country, before it disappeared completely. They called for a thorough investigation to recover their money.
According to circulating information, the victims formed pressure groups to demand intervention by the relevant authorities and the opening of a judicial investigation to arrest those involved and to try to recover the stolen funds or at least partially compensate those affected.
This type of fraud is not new; it is used in various countries around the world and relies on collecting money from victims under the pretext of investing it, while offering attractive profits at the outset to gain trust.
Last December, a number of Moroccans filed complaints after investing in an online platform called “SMG,” which promoted “financial freedom” and promised large profits for completing simple tasks before withdrawals were blocked and accounts were shut down.
Victims said the platform relied on pyramid-style recruitment and sought to project legitimacy by opening offices in several cities and staging events featuring fabricated success stories.
Local media reported that authorities arrested several suspects, including an employee in the prison administration alleged to be the platform’s mastermind, as the case drew widespread reaction on social media.
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