Ponzi like schemes continue to con Kenyans millions of shillings but they seem never to learn. A good example was the Public Likes and Live Auction that left wannabe investors high and dry. Not only do these schemes use attractive advertisements but general Kenyans are attracted to easy money that in most cases end up ‘premium tears’.
The latest Ponzi scheme that has conned thousands of Kenyans is the Amazon Web Worker. So many have expressed their loss through social media.
“My Ksh21,000 is gone. I joined after taking a loan and subscribed to level 5. I have lost all my money. I do not know where to begin,” one victim recounted.
Others have lost Ksh10,000, Others Ksh50,000 and much less or more. Others even encouraged their friends and family to join. The app had no connection to Amazon at all
and only used their name so as to attract people.
Even from the onset it had all the markings of a Ponzi scheme.
How it worked
To join them, you had to register using the Amazon Web Africa app or their website.
Joining was completely free but to start earning one has to subscribe to buy one of their packages. You will then complete various tasks and earn different amounts daily depending on the package.
The packages included:
- VIP 1 which costs 500/= and one had to complete 15 tasks then earn a total of Sh30 to Sh50 daily.
- VIP 2 which costs 3,000/= and one had to complete 20 tasks to earn a total of Sh200 to Sh300 daily
- VIP 3 which costs 8,000/= and one had to complete 24 tasks to earn a total of Sh600 to Sh800 daily
- VIP 4 which costs 20,000/= and one gas to do 24 tasks to earn a total of Sh1500 to Sh300 daily.
The app was also offering very high interest rates on any amount one wishes to invest with them. A ridiculous interest rate that not even big banks across the world offer.
For example, if you make an investment for a 7 days period, your initial investment will grow by 38.5% rates. This means that:
- In 30 days it will grow by 204%
- In 75 days it will grow by 600%
- In 120 days it will grow by 1020%
- In 180 days it will grow by 1620%
- In a year, it will grow by 3420%
Who offers you such huge amounts of interest?
The other trick it used was referral, which is a popular trick with all Ponzi schemes. It was offering a 10 to 13% bonus for every member one refers to. As more members joined, they only used the money to pay old members.
Conclusion
With all these warning signs, still many Kenyans fell for the scheme. One can only hope that people will wake up in future. Most Ponzi schemes: require you to buy a package, hence, to earn one has to invest, they ask you to refer others so you get a bonus and lastly, they offer ridiculous returns. If you see any of these signs, run away as fast as possible.