Financial pyramids as a threat to economic stability: digital tools for detection and prevention

Abstract

The article reveals the essence and evolution of financial pyramids as one of the most dangerous forms of fraud, which retains the exact mechanism: paying profits to earlier participants at the expense of new contributions. The key factors contributing to their spread are identified: the desire for quick enrichment, trust in charismatic organisers, aggressive marketing, low financial literacy, and gaps in state control. In the context of the digital transformation of the financial sector, pyramid schemes are disguised as investment projects using cryptocurrencies and online platforms, making them difficult to detect and control. Mathematical models demonstrate their inherent instability in conditions of a shortage of new funds, and the socio-economic consequences manifest as significant financial losses for the population, a decline in trust in financial institutions, and an increase in social tension. Transnational pyramid schemes pose a particular danger, as digital tools and the anonymity of cryptocurrencies allow them to operate beyond national jurisdictions, complicating coordination between regulators. Detecting such schemes requires not only legal mechanisms, but also the use of high-tech tools for analysing large data sets, in particular artificial intelligence and blockchain tracing technologies, which allow hidden connections and atypical financial flows to be identified at an early stage. Public trust and psychological factors play a significant role in determining the effectiveness of fraudulent schemes. The prevalence of such phenomena is a direct consequence of low financial literacy, a lack of critical thinking, and a belief in getting rich quickly without any factual basis. Effective countermeasures involve a combination of digital technologies, such as artificial intelligence, Big Data and blockchain analytics, with legislative regulation and increased financial awareness. Particular emphasis is placed on the importance of international cooperation in data exchange and regulatory coordination, which enhances the effectiveness of the fight against fraudulent schemes. It also highlights the need to improve educational programmes, develop financial literacy, and strengthen the media's role in informing citizens. This comprehensive approach not only reduces the scale of existing financial pyramids but also effectively prevents the emergence of new ones adapted to the digital age.