The Kenya Central Bank (CBK) has warned Kenyans to be careful when dealing in cryptocurrencies after a spate of forex fraud cases were reported in the last two months. The Central Bank of Kenya, which is also responsible for all aspects of the country’s financial trading system, told consumers that they must check the status of any dealers with whom they interact, otherwise they risk losing their capital. It warned that there are only three Forex trading brokers registered in Kenya, and investors should be wary of giving their money to rogue scammers.
It warned that some unscrupulous dealers might say that the deal on the table is the best in its class, but actually be offering a worse deal than what could be available elsewhere. The spate of Forex trading and cryptocurrency scams have hit several countries including the United States where the FSC issued similar warnings. Several businesses were deregistered on suspicion of having transactional links with individuals suspected to be scammers.
The fraudsters in Kenya are especially witty and prey on the kinsmen’s desperation for quick financial gain schemes. They are known to use the latest technology to advance their plots. Their hub is the social media such as Facebook and Twitter where they have accounts that appears to be belonging to registered businesses. Some have also found ways to manipulate the social media sites to have verification badges lwhich is even more confusing for the unsuspecting victims.
The chronic state of most African economies such as Kenya and amid the Covid 19 pandemic makes the citizens desperate for make cash quick schemes. The dealers are not registered nor licenced but continue to operate silently and off the radar of the authorities. The potential victims never doubt the legitimacy of such schemes because their advertisements appear boldly on newspapers and billboards and are not regulated. Because they are not registered, they are nearly impossible to pursue because they have no registered places of business.
The central bank of Kenya has advised it’s citizens with intentions of investing in the Forex trading business to check the status of their Forex trading partners and brokers on their website. They have reiterated that there are only three known and registered Forex traders and any other individuals or businesses are merely masquerading and should never be trusted, especially where the deal looks so good. “We urge members of the public to confirm the licensing status of forex dealers from CBK website before engaging with the dealers, as they risk being defrauded and losing money”, said the Central Bank of Kenya governor, John Njoroge. “The attention of CBK has been drawn to the unlicensed and unregulated online forex dealerand platforms that put Kenyans at risk of losing their money”, he added.
Kenyans are warned to be very vigilant with their monies and the people with whom they invest with. The central bank has a button on its website where potential investors can check the legitimacy of the their Forex trading partners. 254news will publish a complete list of all the scams currently exploiting the citizenry in the sequel publication.