Have you ever heard of Public Likes—the infamous pyramid scheme that swept through Kenya between 2017 and 2018? Maybe you even invested and saw some returns, or perhaps you were among those who lost everything like this writer.
If that one passed you by, then you’ve probably come across the viral messages hyping the “Anita Promotion,” urging you to invest quickly. These messages often come with fabricated M-Pesa screenshots, showing supposed payouts of around KSh 35,000 to lure in unsuspecting victims.
Over the years, Kenyans have lost millions to such schemes. The rise of the internet, mobile banking, and social media has only made this menace worse, providing scammers with new ways to exploit people. Renowned investor Warren Buffet has even warned that the emergence of AI will make the situation even worse.
During a recent X Space discussion titled Demystifying Wealth Creation: Spot Scams While Building Wealth, hosted by Abojani Investments, Purity Mbeke, Assistant Development Coordinator at Equity Group Foundation, and Daniel Mwangi Gachohi, Enterprise Development Coordinator at Equity Foundation, shared insights on common scams and how to avoid them.
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Rise of online money-making schemes
Purity Mbeke kicked off the conversation by highlighting some of the most outrageous scams circulating on social media platforms like Instagram and TikTok.
“One of the biggest scams I’ve encountered is fake giveaways,” she said. “Influencers pretend to hold contests where participants contribute small amounts of money, hoping to win. But in reality, no winners are ever chosen. People keep sending money, from as little as KSh 50 to as much as they can afford, only to realize later that the contest was a scam.”
Another major scam involves influencers flaunting luxurious lifestyles that do not reflect their reality. Purity noted that many young people fall victim to this because they idolize these personalities and aspire to achieve similar financial success.
“There are people we grew up with, whose backgrounds we know, but on social media, they portray a completely different reality. They showcase designer clothes, expensive mansions, and flashy cars, making people believe in the get-rich-quick dream,” she added.
Cryptocurrency and forex trading scams have also become rampant, where fraudsters promise to double or triple one’s investment. Many young Kenyans have lost their hard-earned money to such schemes, which are essentially money laundering operations.
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Scammers have also found a way to infiltrate WhatsApp groups. Purity explained how people are lured into clicking suspicious links that claim to be from reputable supermarkets and organizations running promotions.
“These links often appear to come from trusted companies, but once you click on them, they steal your personal details,” she warned. “Sometimes, scammers disguise them as attachments or photos, tricking you into giving away sensitive information.”
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Spotting red flags in online scams
When asked about red flags to watch out for, Purity outlined key indicators of fraudulent schemes:
- Too good to be true promises: If a scheme promises instant wealth just by clicking a button or sending money, be wary. “If something sounds unrealistic, question it,” she advised.
- High returns with no risks: Scams often promise to double or triple your money with no effort. Real investments take time and involve some level of risk.
- Urgency and pressure: Many scams pressure people to act immediately, using phrases like “Send money now before the opportunity closes!” or “Only a few slots left!” Slowing down and thinking critically can prevent falling into such traps.
- Anonymity of organizers: Fraudulent schemes are often run by people who do not reveal their identities. They may use fake addresses, non-functional phone numbers, or generic emails.
- Lack of verifiable success stories: If a scheme claims to have made people millionaires but provides no real examples or testimonials, it is likely a scam.
Why young people are vulnerable to scams
Daniel Mwangi joined the discussion and emphasized why young people are easy targets for financial scams.
“Young people have a strong desire to make money quickly,” he said. “They want to invest today and see returns immediately. But real investments don’t work that way.”
He pointed out that financial illiteracy is another major issue. Many people do not understand how investments work, making them easy prey for fraudsters.
“Without financial knowledge, it’s difficult to tell whether an opportunity is legitimate or not. That’s why financial literacy is critical,” he added.
Social media influencers also play a huge role in misleading young people. Some claim to have made millions overnight and invite their followers to join investment platforms with promises of high returns.
“The fear of missing out (FOMO) is another trap,” Daniel noted. “When everyone around you seems to be joining a scheme, you feel pressured to do the same. Scammers capitalize on this urgency to get people to send money without proper research.”
Managing emotions and avoiding scams
The conversation then shifted to the emotional side of financial decision-making. Purity stressed the importance of discipline and long-term thinking.
“If making money was so easy, poverty wouldn’t exist. We wouldn’t have people on the streets, we would have the poor,” she said. “What comes easily also goes away easily. You need to have clarity on what you want to achieve financially. Seek advice from financial experts and mentors before making investment decisions.”
Daniel added that young Kenyans needed to be educated on realistic investment returns and proper financial planning.
“Scammers tend to offer crazy returns, which confuses people emotionally,” he explained. “A good rule of thumb is that if an investment promises more than what traditional banks or established financial institutions offer, it is likely a scam.”
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Protecting yourself from scams
As the discussion concluded, both speakers encouraged listeners to be cautious and well-informed.
“Always verify before investing,” Purity advised. “If a deal is legitimate, there will be official documents, clear terms, and verifiable success stories. If it feels rushed and secretive, walk away.”
Daniel emphasized the need for financial education.
“Financial literacy is your best defense against scams,” he said. “Understand how investments work, seek guidance from reputable financial experts, and don’t let emotions drive your decisions.”
As online scams continue to evolve, staying informed and vigilant is the best way to protect oneself from financial loss. By recognizing red flags, questioning unrealistic promises, and prioritizing financial education, Kenyans can safeguard their hard-earned money and build wealth the right way.
