Kenya: How to Know You Are Being Scammed
More than 4,000 investors who pumped Sh10 billion into an unregulated product by Cytonn are now preparing a fresh class action suit against the company in the push to get their money back.
But these are not the only investors who have been promised a shorter route to riches but ended up regretting dearly after losing millions and sometimes billions of shillings. These are tell-tale signs that you are about to be scammed.
Unbelievable high returns
If it entices you with handsome returns that are far above the market rates, you are probably about to invest in a scam.
Churchill Ogutu, an economist at Genghis Capital, says investors must watch out for investment schemes that promise abnormal returns way above market rates, noting that this is the hallmark of such scams.
“If you are investing in a fund that promises you returns of say 20 per cent after a certain period of time yet…