The story of Kourosh Kampani could have been the subject of a detective film with a thrilling and captivating plot. Unfortunately, this story is based on reality and according to published reports, has left tens of thousands (some reports say up to 200,000) of people bankrupt. Some of these victims have lost all of their assets. It is a low-risk and highly profitable scam, targeting victims from all social classes, especially the middle and lower classes.

The story began a few months ago. A company based in Tehran, which had been able to reach audiences and customers from all four corners of Iran through the help of Instagram, claimed to be selling iPhones for 20 million tomans, on the condition that the buyer would have to wait one month to receive their phone. A simple access to the official websites of the seller of this phone in America – as the center of the iPhone brand – and multiplying the dollar price of the phone by the current exchange rate, could show any naive buyer that the seller’s claim was a lie. Therefore, Kourosh Company decorated their claim: firstly, a portion of the 20 million payments were received by the buyers and turned into a document of the company’s honesty. This method, however, is not innovative and is known as “ponzi scheme”. Secondly, a group of celebrities, from Seyyed Javad Hashemi – the always-martyred actor – to Hadi Choopan the

Kourosh Company, of course, is not the first innovator of mass fraud in Iran. “Caspian Victims” and several other financial and credit institutions, as well as domestic and foreign pyramid companies, which have been able to pocket huge profits from large populations of customers in different periods, are probably the most well-known examples of mass fraud. Although smaller examples with fewer victims are not uncommon in small towns or on a local scale. Therefore, the issue is not a unique and singular event, but a relatively common phenomenon in the economic space of Iran.

The story of the water-filled eyes of the Iranian stock market is also made of the same scams: stocks instead of iPhones and the government instead of celebrities. During the rise of the stock market in Iran, all government media and some non-government media were serving to advertise the profitability of the stock market. The government of Hassan Rouhani gradually offered a large portion of government assets in the stock market. As a result, the Iranian stock market had many customers and provided good profits for shareholders for a while. However, the bitterness of this syrup did not last long. A few months later, the lines of losers and protests of stock market participants had taken the place of news about the “profitability of the stock market” in the headlines.

Hidden in the heart of this repetitive pattern is an economic crisis, instability, and loss of hope. Paralyzing sanctions, inflation, unemployment, and lack of economic prospects make citizens feel financially insecure. In such dire conditions, the attractiveness of seemingly profitable offers becomes irresistible and turns citizens into easy prey for private and government fraudsters.

Despair is not just a realm of losing “real hope”, but also a realm of false hope. The relationship between human societies and the issue of “hope” has a striking similarity to the metaphor of thirst and mirage. Throughout human history, hope has risen in times when real hope and security have disappeared, such as hope for a savior, hope for a heavenly transformation. It seems to be a human characteristic that when one cannot achieve their desires in the current reality, they seek them in the world of imagination. A large portion of the Iranian people, in the past hundred years, have also been caught up in this political game and search for a “savior” among politicians. Kourosh Kampani – and his political, economic, social, and cultural counterparts – ride on this epidemic and chase after their own selfish desires.

One interesting aspect in the story of Kourosh Company was the special role of celebrities and “influencers”. The growth of the political and social influence of celebrities is not limited to Iran, but is a global phenomenon. However, the rise of this influence in Iran has been unprecedented in recent years. For decades, paparazzi, or reporters and photographers chasing after famous people, have been showcasing the lives of celebrities on the pages of newspapers and on television all over the world. This phenomenon suddenly became widespread in Iran with the emergence of social media networks. These networks provided a platform for Iranian celebrities to use their fame to make money. It doesn’t matter what they advertise – from local yogurt to a 20 million tomans iPhone – anything that can be sold in the market can become the subject of their advertisements. These celebrity endorsements are not based on credibility, but on their flashy and glamorous lifestyle. A lifestyle that is promoted as the aspiration of the younger generation and the upper classes, and

The hand of the Islamic Republic can always be seen, either in the midst or in the corners of major scams. For example, in the stock market scandal, it was the hand of the government that was searching for the people’s savings in their pockets. Or in the case of financial and credit institutions, it was clear that part of the government or its affiliated institutions were involved in burning the capital of the bankrupt. In the case of Cyrus Company, it is not far-fetched to think that government institutions were directly or indirectly involved. Given the special situation of the dollar and imports in the country, it is natural that entering the import market, especially for American phones, is not possible without the involvement and interaction of government institutions. Therefore, the hand of the Republic is not so “hidden” in this scam. No one believes that such a large-scale scam could have happened without a clear organization and only by a 27-year-old young man.

The role of the government in such frauds is not limited to financial losses. The government is obligated to defend its citizens against such widespread and large-scale frauds, as the presence of the government gives credibility to the company’s license, which is one of the reasons for people’s trust in fraudsters. Fraud, on a large scale, in the eyes of the government, and with detailed advertising, even for a long time, seems unlikely. Therefore, in this poisoned trust, the government is in the forefront of those accused of collaboration.

The “iPhone” in the story of this fraud is an interesting metaphor for the repeated failure of prohibition and restriction in the Islamic Republic. About thirty years ago, when the Soviet Union was in its final months and years of collapse, “McDonald’s”, which is more than just a simple restaurant, but also a cultural ambassador of America in the far corners of the world, was able to obtain a license to operate in Moscow for the first time. McDonald’s entry into the strict and rigid Moscow, which was facing a “prohibition”, a backlash against the emergence of new phenomena in the cultural field, created a strange image: the remaining images of that day showed a very long line of people who had come to taste the forbidden fruit. Published reports indicate the sale of over 30,000 hamburgers on the first day of reopening. This image alone could convey the failure of the prohibition project to the rulers of the Soviet Union. The same image exists in relation to the iPhone and the Islamic

The rise of large-scale fraud in Iran imposes deep and lasting damages on both society and individuals, far beyond just financial losses. These waves of fraud target not only financial losses, but also the trust and deeper dimensions of social solidarity. The victims of this loss of trust are not just those who have suffered financial losses. The daily spread of news about large-scale fraud creates a widespread epidemic of distrust. At the individual level, the consequences of falling victim to large-scale fraud can be devastating. Families who have invested their savings in fraudulent investments are financially ruined and struggle to cover their living expenses, especially in the current crisis situation. The psychological toll of such losses is just as deep, and victims often experience feelings of shame, betrayal, and helplessness. As a result, these frauds are one of the sources of the ongoing crisis.

In the face of increasing threats from large-scale fraud, the regulatory framework plays a crucial role in protecting consumers. The consequences of the inefficiency of the governance structure in Iran extend even to the victims of the Cyrus Company. While there are laws in place to support consumers, the institutions responsible for enforcing these laws are either ineffective due to bureaucratic inefficiency, or are preoccupied with ideological matters and intruding into people’s personal lives, or are complicit with fraudsters, rendering them practically useless. The people of Iran are left alone in the clutches of fraudsters.

While paying attention to and addressing the various aspects of “repetitive fraud” is important, addressing the root causes that contribute to the spread of such activities is vital. In Iran, like many countries struggling with economic insecurity, poverty and inequality lie at the heart of this problem and lead to despair and vulnerability among middle and lower class populations. One of the primary facilitators for fraudsters is the lack of economic opportunities and social mobility for large segments of the population. With rising unemployment rates and stagnant wages, many Iranians find themselves trapped in a cycle of poverty with limited avenues for advancement. In such circumstances, the promise of quick wealth offered by fraudsters becomes alluring and creates false hope amidst economic despair.

In addition to poverty as the main economic motivator, the prevalence of economic corruption, exemption of the “big fish” from punishment, and lack of economic transparency create an economic atmosphere where fraud is not seen as ugly and against values, but rather as a value itself. The multi-billion dollar embezzlement figures in recent years have desensitized society to corrupt economic relationships. In addition, the lack of transparency in government and private institutions, which are funded through taxes in most countries, is not a joke. The economic structure of Iran has been created for the benefit of fraud and corruption by those in power, so it is not surprising that the new fraudsters take advantage of this opportunity.

Kourosh Company, as a prominent example, has an important message: the prevalence of fraudulent schemes in Iran threatens the economic well-being, social cohesion, and trust of society. From advertising techniques to organized fraud and the role of the government on one hand, and celebrities always on the scene on the other hand, these cycles perpetuate poverty, inequality, and distrust. In building for “Iran Tomorrow”, in addition to healing the deep wounds of these frauds on the body of society, it is essential to provide means for preventing fraud.

From the development of social justice to returning the government to its supervisory role and ultimately removing corruption from the structures, urgent actions are needed to break the cycle of poverty and fraud. Iran of tomorrow can still be built on the foundations of honesty, fairness, and justice.