Investment Scams in Mongolia
Mongolia's mining boom and growing middle class have made it a target for fake investment schemes promising high returns on mining stocks, crypto, and real estate.
Part of: Investment Scams
Last reviewed: 1 June 2026
Mongolia's resource-rich economy and expanding urban middle class in Ulaanbaatar have attracted both genuine foreign investment and fraudulent schemes designed to exploit local appetite for financial growth. Mining-related investment fraud is particularly common, given Mongolia's significant coal, copper, and gold sectors and the cultural familiarity with resource wealth.
Fraudulent platforms also offer cryptocurrency and real-estate investment products, circulating primarily through Facebook, which remains the dominant social media platform in Mongolia. Pyramid schemes linked to Chinese and South Korean networks have also been recorded in the country.
How this scam works on Mongolia
Victims encounter investment advertisements on Facebook or receive personal referrals from friends already enrolled in a scheme. Platforms claim to invest in Mongolian mining projects, international crypto funds, or real-estate portfolios in Ulaanbaatar. Returns of 15–30 % per month are promised, and early participants do receive payments — funded by new member deposits.
The schemes collapse when recruitment slows, leaving the majority of participants with total losses. Foreign-operated platforms follow the same pattern as elsewhere: initial gains displayed on a fake dashboard, then withdrawal blocks and demands for fees.
Pyramid structures sometimes frame themselves as multi-level marketing (MLM) companies selling wellness or fintech products, adding a layer of apparent legitimacy.
Common red flags
- Monthly returns of 15 % or more are promised with no credible explanation of the investment strategy.
- The firm is not registered with the Financial Regulatory Commission of Mongolia (FRC).
- Income from recruiting new members forms a core part of the earning model.
- Referral bonuses create social pressure to recruit friends and family.
- The platform's dashboard shows consistent gains unrelated to actual market movements.
- Withdrawals are blocked or subject to escalating fees.
How to protect yourself
- Verify any investment firm on the Financial Regulatory Commission of Mongolia (FRC) register.
- Be sceptical of any investment promising returns far above bank deposit rates.
- Avoid schemes where recruiting others generates income — this is the hallmark of a pyramid.
- Consult an independent financial adviser before committing any significant savings.
- Report suspected pyramid schemes to the FRC and Mongolian Police.
- Warn friends and family in your network who may have been recruited.
How to report it
- File a complaint with the Financial Regulatory Commission of Mongolia (frc.mn).
- Report to the Mongolian National Police cybercrime unit.
- Contact your bank immediately if funds have been transferred.
Frequently asked questions
How do I verify an investment firm is licensed in Mongolia?
The Financial Regulatory Commission of Mongolia (FRC) maintains a public register of licensed entities at frc.mn. Always check before investing.