Beneath the Surface: Unpacking 'RGA' investment scam in Nagaland

Detailed Look at Modus Operandi and Networking Channels

Moa Jamir 

The ‘RGA’ Investment scam leveraged sophisticated tactics to attract members across Nagaland, presenting itself as a legitimate income-generating opportunity.

By combining attractive task-based rewards with a hierarchical recruitment model, the scam managed to gain traction and recruit extensively.

The scam surfaced after the Nagaland Police issued an advisory on October 23, cautioning the public of a new ‘investment scam’ by the one company named RGA and noted that it appeared to be a ‘Ponzi scheme.’ A formal investigation started a day after. 

By Sunday, it is widely accepted that it is another ‘earning app’ scam, being operated cashing on people’s desire to earn quick money and decently using via multilayered networking, while using the name of a legitimate firm to entice the ‘investor.’

The Morung Express presents in-depth breakdown of its modus operandi and networking methods of the RGA scam.

MODUS OPERANDI
Job Security Deposits as Entry Fees: As per a ‘promotional material/advertisement’ as well as information available on ‘official RGA’ channel on social media platform Telegram,  the RGA required potential participants to make an upfront "job security deposit" to join the platform, ranging from Rs 1,800 (J1) for entry-level positions to Rs 5,40,0000 (10) for higher-level roles. 

Each deposit purportedly guaranteed a year-long membership, giving individuals access to a fixed number of tasks per day, which RGA claimed involved promoting app visibility for major tech companies.

'Earning potential of RGA'.

Task-Based Earnings: Upon joining, members were assigned daily tasks that allegedly supported app rankings on platforms like Facebook, Instagram, and Google. Members were told they would receive a portion of the fees paid by app companies to RGA, with tasks yielding different earnings based on the level of membership:

J1 Membership: Required a Rs 1,800 deposit and provided five daily tasks, each earning Rs 12, with an expected monthly income of Rs 1800 and Rs 21,600 in a year. 

J2 Membership: Required a Rs 4,800 deposit, yielding ten daily tasks, each paying Rs 16, with a potential monthly income of Rs 4800 and Rs 57,600 annually. 

J10 Membership: With Rs 5400000 deposit, this level offered 520 tasks daily, each earning Rs 460, and the projected monthly payout of Rs 71,76,000  and annual income as high as Rs 8,6,11,2000.

Basically, each deposit is recovered within one month, with higher earning potential for those at the upper level. 

The task income model was designed to create a perception of consistent earnings, attracting individuals with the promise of reliable returns. However, the primary earnings did not come from these tasks but through recruitment.

Recruitment and Downline Expansion: To increase potential earnings, members were encouraged to recruit new participants, interns subordinates, creating a downline structure. RGA offered lucrative referral bonuses and management fees for recruiting others, incentivising participants to bring in new members under their "downline" structure.

This multi-level model benefited those at the top, as they profited from the deposits and earnings of new recruits below them:
Direct Referral Bonuses: Members received a percentage of the security deposit paid by each person they directly recruited, creating a cascading income model.

Tiered-Commission System: RGA set up a three-tiered management model where individuals earned bonuses on the recruitment efforts of their downline, up to three levels deep. For instance, if a recruit's downline member signed up another individual, the initial recruiter would receive a smaller bonus from that new recruit’s deposit.

A promotional RGA app.

Members were also promised a "management fee" for overseeing the tasks of their downline, making recruitment as appealing, if not more so, than the task-based earnings.

After reaching certain level, it was informed that one can apply for various positions ranging from Assistant Manager to marketing director with “monthly salary” which increased depending on the number of members in a team.

CHANNELS OF NETWORKING: 
RGA employed a multi-platform networking strategy to recruit and retain members, taking advantage of social media's broad reach and messaging apps' private communication.

Telegram as the Central Hub: The primary communication point of sharing information and updates appeared to be a “RGA Official Channel” on Telegram, had 15,364 subscribers (As of October 23).

RGA Marketing Limited or R/GA are used interchangeably in all communications. 

Here, the company shared updates on tasks, events, incentives, and recruitment guidelines. This channel provided frequent promotional content, testimonials, and success stories aimed at attracting new members and reinforcing trust among existing participants. 

The channel also enabled instant updates on platform changes, such as link modifications and fee requirements, to a large audience at once.

By October 27, the channel subscribers had fallen to around 13800, with no update since October 24.   

Frequent Link and Platform Changes: RGA employed a strategy of rotating web links, such as rga99.com, rga0099.com etc, making it harder for authorities to trace and shut down the platform.

RGA Complaint Form on Nagaladn Police website.

The constantly changing links directed users to different landing pages, with some links ceasing to work as new ones were introduced. This evasive tactic not only obscured tracking but also created an impression of a dynamic, high-tech company.
The last message on the channel read: “The system is being upgraded. Please log in using rga44.com or rga00.com.” However, the links were not working. 

Community-Based Networking: RGA capitalised on physical gatherings gaining visibility through events, inaugurations, and charitable activities. By holding events at local institutions and public venues—such as churches, community halls, and market areas—RGA fostered familiarity and trust within the community. 

A message claimed that as of September 15, the RGA has launched 820 charity events across India. 

Claims of High-Profile Partnerships: RGA frequently claimed strategic partnerships with global tech giants and banks, as well as ‘endorsement’ by the Reserve Bank of India. Such statements were shared through Telegram and social media, reinforcing the platform's perceived legitimacy. This tactic aimed to assure members of the scheme’s legality, while also encouraging hesitant potential recruits to join.

WIDE-SCALE PRESENCE IN NAGALAND:
To legitimise its operations and draw participants, RGA organised public events across several towns and localities in Nagaland, gaining visibility through gatherings, inaugurations, and charitable activities. 

As per the Telegram channel, RGA offices were opened in Naga United Village, 4th Mile Central Jail Junction and 6th Mile, Chümoukedima; High School Colony and Midland Colony, Kohima; Tuensang Bazaar and Medical Ward A, Tuensang; Alhuto Colony, Zunheboto and Noklak Town 

RGA’s events extended beyond recruitment-focused gatherings to charitable work aimed at enhancing credibility. These included an event in  Jalukie B-Village on October 6, Tuensang on October 13, and Noklak on October 19. These acts were likely intended to cement RGA’s legitimacy and social standing within Nagaland.

RED FLAGS
Besides job security deposits, high returns for simple tasks and emphasis on recruitment over product or service, the initiation formal investigation by the Nagaland Police on October 24 has somewhat blown the lid on the ‘RGA investment scam’ after an advisory the day before.

The police said it had registered a regular case in the State Crime Police Station and had initiated investigation against the “RGA company” after taking “into cognisance the complaints reported in 1930 CFCFRMS portal against investment company RGA for duping its customers.”

Complaints can now be filed through two links:  https://police.nagaland.gov.in/rga-complain-form/ and https://forms.gle/skHEQ5MwS1LrhKc56, the police stated.

Platform Management Fees: 
Meanwhile an undated letter to all “RGA working partners,” shared on the ‘RGA Official Channel on October 23 citing “regulations of the Indian central government,” it asked for ‘platform management fee’ to “all RGA regular employees” within the specified time (from 9:00 on October 23, 2024, to 18:00 on October 24, 2024).

Non-payment would lead to account deactivation and forfeiture of funds to charities, it cautioned.  However, after payment of the management fee, the RGA account will return to normal, it asserted, adding that all RGA members “who have paid the platform management fee can withdraw cash from 9 am to 6 pm on October 25.”

This demand for a sudden fee on October 23, with strict compliance deadlines, raised alarms and led to heightened scrutiny from participants and authorities.

Real R/GA  debunk association 
Real R/GA Denies Involvement: R/GA, the New York-based global digital innovation firm, has firmly denied any link to the “RGA MARKETING LTD” promotions circulating in India, stating they are unrelated to its operations. 

Responding to queries from The Morung Express, George Griffiths, R/GA’s Global Executive Director, noted, “This appears to be a variation on a common ‘Job Offer Scam.’” He confirmed that R/GA has no business presence in India, Egypt, or the Philippines and has posted a “Scam Notice” on its website to alert the public. 

Emphasising that the company is taking legal steps, he assured full cooperation with authorities investigating the matter.

SIMILAR RECENT SCAMS
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August 2024: Yby online money trading platform scam rocks Assam and Arunachal Pradesh. CID probe on in Assam. 

August 2024: Directorate of Enforcement (ED), Dimapur Sub Zonal Office informed that movable and immovable assets worth Rs. 41.83 crore belonging to various persons and shell entities has been attached concerning “HPZ Token & others” for allegedly  “duping gullible investors, in the guise of promising astronomical returns.