The Director of Criminal Investigations (DCI) has asked Kenyans to be cautious following the emergence of scammers using cryptocurrency investment platforms to con unsuspecting members of the public.
In a statement on Wednesday, February 7, the DCI raised the alarm over the increase in reports of loss of hard-earned money by Kenyans to these scammers.
“Scores are being lured to join online cryptocurrency investment platforms and end up losing their investments to the fraudsters,” read the statement in part.
DCI is currently investigating several such cases where investors who fell for the scam are crying foul.
How They Do It-DCI
The DCI explained that cryptocurrency has swept the Kenyan modern-day market.
“Should you have information on anyone using this approach to scam investors, please contact us through the DCI toll-free hotline 0800722203,” said DCI.
For this reason, scammers send short messages (SMS) that read “Make Money Sitting At Home” to random people, with a link to join the online investment platform.
Unsuspecting victims venture into the schemes due to the promises of high margins of profit as returns on investment.
They, however, end up losing huge sums of money to the scammers.
“The DCI cautions Kenyans and any other person to beware of this scam and advises them to verify the authenticity of any online investment platforms with Capital Markets Authority (CMA) and the Communication Authority (CA) respectively before investing their hard-earned money,” read another part of the statement.
What is Cryptocurrency?
Britannica Money defines cryptocurrencies as digital assets that rely on an encrypted network to execute, verify, and record transactions, independent of a centralized authority such as a government or bank.
According to Forbes, a cryptocurrency is a digital, encrypted, and decentralized medium of exchange.
Unlike the U.S. Dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency.
Also Read: Kenya Tops the Continent’s Cryptocurrency Ownership, 5th In The World – New Report Shows
For good understanding, it can be broken down as follows;
1.Cryptocurrencies (or “crypto” for short) are decentralized currencies, meaning they’re neither issued nor governed by a central bank. Some cryptocurrencies are issued by their developers, while others are generated by their respective network algorithms.
2.Crypto are digital assets—they have no tangible form.
3.Cryptocurrencies exist and operate on a public ledger called a blockchain, which records all crypto transactions.
4. Blockchain encryption is designed to make all transactions immutable and secure.
Also Read: How DCI Nabbed G4S Guards in Ksh2.8 billion Gold Scam
Some cryptocurrencies, like Bitcoin and Tether, were developed to serve a monetary function.
Others, such as Dogecoin and Shiba Inu coin, were developed as novelty items whose values rely on popularity and trading.
Many, if not most, cryptocurrencies were developed to solve challenges within the blockchain ecosystem, such as transmission speed, scalability, security, energy efficiency, and cost efficiency.
How can I invest in crypto?
You can purchase crypto through a cryptocurrency exchange or any financial institution that can broker a cryptocurrency transaction.
Once you purchase cryptocurrency, you can secure your crypto coins in a digital wallet, online wallet, or hardware wallet.
