BTN News: In Colombia, two pervasive financial threats are wreaking havoc on both middle and upper-income citizens: the infamous “gota a gota” loans and the resurgence of investment scams known as pyramid schemes. Once thought to be a relic of the past, these fraudulent operations have made a strong and alarming comeback. According to the Superintendent of Societies, Billy Escobar Pérez, the situation is far worse than previously understood. In a revealing interview with El Tiempo, Escobar Pérez shed light on the shocking extent of these issues, which have ensnared hundreds of thousands of Colombians and continue to grow at an alarming rate.
Escobar Pérez, a highly educated professional with an extensive background in law, business administration, and social security, highlighted the grim reality that many entrepreneurs, who are often unable to secure traditional bank loans, are turning to illegal and predatory lending practices like “gota a gota.” These loans, often referred to as “credits of death,” carry exorbitant interest rates that lead to financial ruin for borrowers. The insidious nature of these loans makes them extremely difficult to combat, as they are often shrouded in secrecy and operate outside the bounds of the law.
The Superintendency of Societies is tackling this issue on multiple fronts, offering advisory services to business owners, evaluating individual cases to understand the underlying financial difficulties, and promoting government-backed financing alternatives to help entrepreneurs avoid falling into the clutches of predatory lenders. Despite these efforts, the battle against “gota a gota” is an uphill one, as these operations continue to proliferate, exploiting the financial desperation of many Colombians.
Equally troubling is the resurgence of pyramid schemes, which have evolved into more sophisticated and diversified forms. These schemes, which illegally solicit funds with the promise of unrealistically high returns, have become a national crisis. Despite being illegal, pyramid schemes have not only persisted but have also expanded into various sectors, including construction, agriculture, and even cyber-based operations, making them harder to detect and dismantle.
Escobar Pérez revealed that in 2024 alone, the Superintendency has initiated 68 processes against identified pyramid schemes, a clear indication that these fraudulent activities are far from being eradicated. The statistics are staggering: over 400,000 Colombians have fallen victim to these schemes, with many losing their life savings. The total amount of money captured by these scams over the past 14 years exceeds 4 billion pesos, yet only a fraction—about 1 billion pesos—has been recovered.
The situation is exacerbated by a cultural mindset that seeks quick and easy wealth, making many Colombians vulnerable to these too-good-to-be-true investment opportunities. Even educated professionals, including economists and business leaders, have been duped by these schemes, underscoring the pervasive nature of the problem.
The complexity of modern pyramid schemes is further amplified by their digital evolution, where cyber-captors operate with near impunity, their identities obscured by layers of online anonymity. The involvement of foreign entities and multinational criminal organizations has added another layer of difficulty in combating these schemes. The international dimension of these operations has necessitated collaboration with global organizations such as the FBI, Interpol, and the United Nations, as well as adherence to guidelines set by the OECD to prevent money laundering and other related crimes.
Despite the concerted efforts of national and international agencies, the problem continues to grow. In regions like Boyacá and Valle del Cauca, where cash transactions are prevalent, pyramid schemes have found fertile ground, preying on unsuspecting individuals who are lured by the promise of high returns on their investments. The rural nature of these areas, coupled with a preference for cash over banking, has made them prime targets for these fraudulent operations.
The sheer scale of the issue is overwhelming. Escobar Pérez estimates that there could be over 20,000 active pyramid schemes in Colombia, involving more than a million people. This figure is not an exaggeration, as the reluctance of many victims to come forward due to shame or fear of retribution means that the true extent of the problem may be even greater. The financial losses are staggering, with billions of pesos circulating in these illegal schemes, money that ultimately disappears when these operations inevitably collapse, leaving a trail of financial devastation in their wake.
In conclusion, the resurgence and proliferation of “gota a gota” loans and pyramid schemes in Colombia represent a significant threat to the nation’s economic stability. These illegal activities not only exploit vulnerable populations but also undermine trust in the financial system. The work of the Superintendency of Societies, in collaboration with other national and international agencies, is crucial in the fight against these pervasive and destructive practices. However, the cultural and economic factors that drive individuals to seek quick wealth must also be addressed if Colombia is to successfully eradicate these fraudulent schemes.
