Over the years, Kenyans have fallen victim to get-rich schemes that have ended up swindling them a lot of money while the owners continue evading justice.
Despite numerous warnings issued by various law enforcement officers, most Kenyans have continued losing their hard-earned money in what is seen as a mixture of both a high appetite for money and desperation.
Central Bank of Kenya (CBK), in a move to get rid of such schemes, has at one time issued steps and regulations on how to spot and avoid falling into such money fleecing traps.
Pyramid schemes are fraudulent entities that promise high returns to investors. It involves recruiting more people to enroll to earn more returns. The person recruited is also expected to recruit more people so that the investment grows becoming a chain of recruitment.
Apart from pyramid schemes, we also have Ponzi schemes, that promise gullible Kenyans short term returns. Unlike pyramid schemes, in Ponzi, individuals pay money to portfolio managers with a promise of receiving their payments at a later date.
Those who buy into the idea of Ponzi schemes are usually convinced that they are investing in a service or a product.
Apart from these two, others that have been engineered to scam Kenyans include bank card and advance fees scams. For years, they have continued to prey on suspecting Kenyans.
Amazon Web Worker
The recent scheme involved a company known as Amazon Web Worker Africa. This one left many Kenyans stranded with youths being the most targeted in the scheme.
Investments locked for seven days earned 38.5 per cent interest, a similar investment earned 204 per cent in 30 days , 75 days attracted 600 per cent, 1020 per cent for 120 days, 180 days earned 1620 per cent, and 3420 per cent for 360 days. The deals were simply too good.
One day, Kenyans woke up to find that the application had been deleted from Google Play without any official communication. Kenyans took to social media to rant and express their frustrations.
Its idea was simple. It involved inviting others to download the app and also saving on the app with a promise of huge returns. Many flooded social media expressing their disappointment prompting the Kenyan authorities to swing into action.
Weeks later, a 50-year-old American was arrested in connection with the scheme. To date, the victims are still keeping hope alive that they will recover their money.
Crowd 1
Crowd 1 was the trending scheme in 2020. Thousands joined with the hopes of becoming overnight millionaires. It revolutionized the game by marketing itself as a multi-level internet marketing business.
Crowd 1 had become a global phenomenon gaining prominence in other international countries.
After numerous exposes from even international media houses, it collapsed with data revealing that it went down with billions of people's money.
Earnsmart
Earnsmart was offering a gold package for Ksh500 with investors being promised to earn from the referral. To sound more enticing, the company even offered to educate its clientele with most of the materials being copied from the internet.
In addition, they also came with a new strategy bringing celebrities on board to popularize the scheme. Most of them ended up being forced to explain themselves after the firm also mysteriously disappeared with billions.
DECI
This is will go down as of the worst schemes that left many people broke. It caught most gullible Kenyans off guard in the mid-2000s who had an eye for quick money.
It promised to double their investments in a span of three months. People sold their lands, vehicles, and their savings hoping to become millionaires after that short period.
The first investors in DECI earned big time. All investments were doubled and in time. As is the Achilles heel of most humans, most wanted more and came back for it.
It went down in 2007, with records indicating that Kenyans lost close to Ksh2 billion. Their testimonies were published and even aired everywhere, but to date, they have never been compensated.
In one of the instances, the victims tried to compel the government to compensate them but failed after the court termed their application as an abuse of the Judiciary.
The victims wanted the government to compensate them Ksh7 billion.
Signs of a Pyramid Scheme
One is required to recruit people in order to earn money. At first, they motivate one allowing them to earn from these schemes. Such schemes are often centered around marketing and promotion as opposed to products and services.
Another sign to look out for in a pyramid scheme, one is required to pay some money to get add-ons. The fees usually have no reasonable justification.
In most instances, these pyramid schemes sell grass to grace ideas convincing the unemployed youths especially to join the schemes only to end up regretting.
How to Protect Yourself From Such Schemes
Avoid responding to emails, letters or calls promising you some form of benefit. That is the first red flag.
Avoid sharing personal information online or through phone calls that promise great investments. Remember, nothing comes for free.
Always create strong passwords online and avoid sharing the same information with anyone.
If you suspect any such activities, it is advised to report to law enforcement officers who deal with fraud.
