How to Spot a Juicy Investment Scam in Kenya 2021


How to Spot a Juicy Investment Scam in Kenya 2021

How to Spot a Juicy Investment Scam in Kenya 2021

Have you fallen victim of an investment scam? Do you know anyone who has lost money in an investment that turned out to be scam?

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A study conducted by the Nationwide Building Society revealed that investment scams increased by 79% in 2020.

This shows how investment scams have rapidly increased both online and offline. Therefore, there is a great need for everyone to exercise caution when approaching any investment to avoid falling victim of scams.

What is an Investment Scam in Kenya?

A scam is a dishonest scheme either by an individual or a company which offers a fake opportunity to make a profit after you hand over a sum of money.

Often, enticing and convincing language is used.


Main Categories of Investments Scams

A totally fabricated investment which doesn’t exist

In the process or at the end you find out that you were investing in a non-existent investment. Basically, investing in the air.

This mainly exist online where people share investment links where you need to sign up and send money.


The investment actually exists but the scammer takes the money and instead of putting it in the opportunity, they squander the money.

For example, when someone purports to sell land and they do not deliver the title deed to an investor.


The scammer pretends they’re representing a legitimate and trusted investment group, but they’re lying.

They end up luring potential investors and conning them. For example, the case of buying a fake phone online, laptop etc.


How to Spot a Scam in Kenya


“Everyone is doing it” sale pitch 

Don’t believe claims that “everyone” is in on the deal.

Be wary of a sales pitch that focuses on how many people have invested, without telling you why the investment is good, how you will individual benefit or what you are investing in.


When the gains and returns from an investment is based on the number of people you mobilize to join.

Do not invest in a project just because you will be rewarded because of the number of people in your social circles or groups you will mobilize to join.

An investment scheme that contacts you out of the blues 

They may reach out to you via email, text message or inboxes on social media platforms and promise you returns.

Funny enough, you do not remember making any inquiry on such an investment.


Pressure into making a rushed decision.

Basically avoid any investment that does not provide room for you to conduct due diligence and they rush you into signing up.


Avoid “too good to be true offers”

Some discounts do not look genuine and the returns are also too promising for example 100% winning rate, 100% profit etc.


When they ask you to keep the investment quiet

The scammer might tell you the investment opportunity is just for you and ask you not to tell anyone. This is red flag and you might end up conned.


Fabricated track record

Some of these scams often claim to be well-established in order to gain your trust.

They may claim to have many years of experience yet do not have official sites where you can conduct due diligence.


Unregulated investment

Any investment that does not fall under any regulated or registered investment category is majorly a scam.


How to protect yourself from investments scams

Protecting yourself from an investment scam is easy. This is how to;

  • “Never invest in a business you cannot understand”, Warren Buffett – never invest in anything you do not understand how it works.
  • If you are not sure about something, then don’t commit until you are 100% comfortable
  • Caution is the best defence. Even if you are proactively looking for an investment and you find what appears to be a legitimate company, you still need to confirm the site is genuine and you are dealing with someone who works there. Ensure a website, social media pages and real customer reviews exists.
  • It is crucial to undertake proper research and due diligence before handing over your money. This involves conducting intensive research on individuals offering such investments to you. You can go ahead and ask for their valid identification cards so that you know their official names, what exactly they deal with and the company they represent.

By Reuben Kimani, CEO, Username Investment Limited

For comments regarding this article, share on the comments section.

Related article: How Women Have Risen To Become The Best Investors. Full Details


How to Spot a Juicy Investment Scam in Kenya 2021

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