This archive report was first published on 19 May 2021.
Kenya's Biggest Online Scams & How to Avoid Them ¶
Published on May 19, 2021
Online scams have become a significant concern in Kenya, with many individuals falling victim to digital Ponzi schemes, job scams, fake websites and lotteries, stocks, crypto, and forex scams. In this article, we will explore some of the biggest online scams in Kenya and provide tips on how to distinguish between legitimate operations and serious scams.
One of the most common online scams in Kenya is the digital Ponzi scheme. These schemes involve aggressive focus on referrals and user invites in exchange for rewards, sleek and professional websites and mobile applications, and ambiguous and worryingly simple tasks supposedly being completed by users. Live Auction, for instance, claimed that users would be paid to watch ads from clients, while Amazon Web Worker Africa falsely claimed to be an affiliate of Amazon Inc. and promised that users could make between Ksh2,500-Ksh5,000 a day helping Amazon merchants complete e-commerce orders.
Many of these platforms initially make real payments to users, leading victims to invest more money and invite as many people as possible. However, at the end of the day, it's always the same story – the platforms vanish overnight, leaving victims distressed after losing large sums of cash.
So, how can you spot and avoid online Ponzi schemes? These digital scams borrow a leaf from traditional pyramid schemes in that users are often required to recruit others to earn money and earnings are tied to referrals. Online Ponzi schemes rarely offer any real products or services and instead hinge heavily on marketing and promotion. They also promise unbelievable returns on investment for short periods of a few days or weeks. If the promise of 20-80% returns on your money every day seems too good to be true, it is because it probably is.
When it comes to investment, make sure you work with platforms, companies, and brokers regulated by the Capital Markets Authority (CMA) and other relevant authorities. Always do your own thorough research before depositing funds to any online investment scheme. Ensure its legitimacy and that it is properly regulated, and that there is an actual value exchange going on as part of the operation.
Other online scams in Kenya include job scams, fake websites and lotteries, stocks, crypto, and forex scams. Job scams often involve setting up online platforms and falsely claiming to be associated with well-known brands and organizations. Messages inviting users to apply for what are often a set number of 'limited positions' are widely circulated on platforms such as Whatsapp, and links redirect users to the fake platforms used to lure in victims.
Always verify that vacancies and job opportunities have been circulated by firms through official channels. You can also always pick up the phone to call, email or message a firm regarding a job posting you have seen before rushing to pay any fees.
Similarly, fake websites and lotteries can be harmful in more ways than one. Sometimes, these messages are circulated heavily on messaging platforms informing you that cars or phones are up for grabs, and you need to click on the link before time runs out. These links lead to fake websites, which can be harmful in more ways than one.
It is essential to verify that any promotions by companies have been shared through their official channels before rushing to click on the link promising you a brand new Toyota.
