Curb online racketeers

There have been far too many fraudulent schemes through which Kenyans have lost millions of shillings of their hard-earned money, but the rackets continue. Ponzi and pyramid schemes that promised bliss left many with pain in their hearts, and families in penury.

People have been ripped off in online pyramid schemes, fake crypto platforms, and unregulated investment rackets that often promise unrealistic quick returns. When the deal is too good, think twice; the popular proverb warns all to be careful when an offer looks unusually profitable.

Now, thousands fear that they may have just lost more millions through yet another suspected online scam. They were reportedly locked out of an online trading platform known as Quant Vest Stock Exchange (QVSE) and told to deposit more money before being allowed to withdraw their funds. The QVSE had recruited mainly middle-level professionals such as teachers as well as boda boda operators and small-scale traders. They were promised that an initial investment of Sh65,000 or Sh129,000 would generate profits running into millions of shillings within months. They then received codes that allowed them to supposedly trade in the shares of US firms such as Tesla and Apple. The investors were also encouraged to recruit new members, promising to double their money. This fuelled a recruitment frenzy.

Fraudsters target gullible or desperate citizens by taking advantage of the high youth unemployment and the increasing popularity of working from home.

Crypto and Ponzi schemes that promised high profits with little or no risk cost the victims Sh2.7 billion in 2019 and Sh1 billion in 2021, leaving thousands devastated. The regulators, such as the Capital Markets Authority and the Central Bank, should enhance monitoring to protect gullible Kenyans.

But the people themselves should also always check and confirm that an investment firm is officially registered by the CMA before sending money to it.

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