Bangkok-based pyramid scams making billions

The damage is likely higher than the DSI estimate which is based on victims' complaints. Many do not come out for fear of legal action against them for taking part in these illegal business operations, said deputy DSI chief Narat Sawettanant.

Members of these schemes seek out clients through whatever channels are available, even beauty parlours or charity events in temples, where the wealthy gather or associate. A monk based in Udon Thani lost around Bt5 million donated to him.

In addition to popular knowledge that pyramid schemes offer returns to investors at unreasonably high rates, the biggest difference between pyramid schemes and legitimate direct-sale businesses are, in the latter case, products are sold and bought among members and they operate in offices across the country.

In the case of pyramid schemes, bases are mostly in Bangkok and mainly rely on banking or online money transactions. "In many cases, their headquarters exist only in cyberworld," the audience was told.

In the Northeast, the illegal schemes have snared victims based in all 17 provinces, including local senior officials, high-ranking policemen and university lecturers. A couple lost Bt800,000 they had saved to use for their wedding.