The British Columbia Securities Commission has issued a warning about schemes selling virtual "shares" that supposedly increase in value as more buyers are recruited.

The regulator says the virtual shares in these "split games" have been marketed and sold primarily in the Lower Mainland's Chinese community by B.C.-based promoters of FullCarry (formerly known as Furuida Global or FRD Global) and International Money Tree (IMT).

“The virtual shares are apparently not backed by any underlying asset, and can only be bought and sold on an online portal specific to each game,” says the BCSC. The organizers claim that rising demand will drive up the price of their shares, which supposedly never lose their overall value. When the price hits a certain threshold, the shares split – perhaps doubling or tripling in number and returning to their original price, explains the regulator, adding that the organizers focus on recruiting more participants by giving buyers bonuses for each additional person they and their recruits bring into the game.

The BCSC is concerned that these "split games" are operating as pyramid schemes – a business model in which payouts depend on the recruitment of new investors.

"Whenever someone promises high returns with little or no risk, that's a warning sign," said Doug Muir, the BCSC's Director of Enforcement. "These split games, like other pyramid schemes, depend on more and more people buying in. You could easily lose your entire investment."

The BCSC urges anyone who has any information about a split game, or is approached to invest in one, to contact the BCSC Inquiries line at 604-899-6854 or 1-800-373-6393 or to file a complaint online.