Meeting all your needs and having some money splurge on luxuries is the dream, and as we often say, the enemy is poverty. This desire for riches can be difficult to satisfy, as you need to either be born into generational wealth, build an empire, or survive the rat race of formal employment. Given the odds that many encounter while trying to achieve this level of economic independence, it is not surprising how unscrupulous actors can leverage the novelty of cryptocurrency and the appeal of a familiar face to pull off a scam.
As times grow more difficult, scammers are adapting, now duping unsuspecting individuals with cryptocurrency and forex trading schemes, luring them in with the promise of quick returns. A common feature is the use of prominent individuals, clickbait headline designed to attract attention, and as we shall explore further, the creation of websites that mimic trusted news outlets with the goal of deceiving and defrauding unsuspecting persons.
The Problem
Social media has been awash with complaints of people getting scammed through fake cryptocurrency and forex trading links shared on the platforms. Other victims even tagged Elon Musk on X to air their grievances.
According to Europol, fraudsters commonly use ads posted on the internet or social media offering investment opportunities with returns that appear too good to be true. These ads will display urgency, making victims think that the deal is one that they cannot afford to miss, often with the promise of earning up to five times their investment within hours. The scammers also assure the investment is low-risk, and even share testimonials of people who have already earned millions which are deposited into their accounts – a perfect sales pitch.
Piga Firimbi looks into how these scams work, and how the scammers engineer the perfect ruse to exploit their victims.
We first noticed a number of advertisements on Facebook and Instagram with clickbait headlines, allegedly from mainstream media houses, and featuring prominent Kenyans – former investigative journalist and promoter of the Exness trading platform Dennis Okari, comedian and celebrity Eric Omondi, and Equity Group Holdings CEO James Mwangi. The ads all say that the person featured encountered a ‘tragic end’, and the images shared have been edited to show them crying.
Clicking the links alongside the ads redirects to pages that appears to be the official websites of credible media houses, in this case The Star, Business Daily, and the Daily Nation. Based on the layout, colour, fonts, and logos alone, one is likely to believe that the website belongs to the media house in question. The scammers even copy the page layouts of the news outlets’ genuine websites, including having identical section headings at the top of the pages, giving them some semblance of credibility. The body of the article is a dialogue from the alleged interview with a warning that the interview was deleted because they supposedly got a call asking them to stop the broadcast when they were live.
Clicking on the ‘Learn more’ link takes one to a page that bears a striking resemblance to that of the Business Daily, including the PAYE calculator widget and a ‘Latest stories’ section.
The scammers have gone to great lengths to present the interviews as being legitimate. Dennis Okari was actually interviewed by Mark Masai on The Social Newsroom, and James Mwangi’s interview is on the Nairobi Securities Exchange’s YouTube channel. Scammers often use legitimate content like this to build credibility, ensuring victims don’t suspect foul play. If you’re rushing to invest, you might not pay close attention to what was said. The fact that the interviews exist makes the fake dialogue seem genuine, and before you know it, you’re partly convinced that the deal is legitimate.
The interviews follow the same pattern. Dennis Okari and James Mwangi state that they became rich by investing with Atom Capital, and they both claimed that with an initial investment of Sh. 30,000 (US$230), one could can make Sh. 12 million (US$93,000) in just 15 weeks, and that reinvesting the interest could earn Sh. 1 million (US$7,800) after only four months.
After this demonstration, the article claims the Central Bank of Kenya (CBK) intervened on Dennis Okari’s interview, and for James Mwangi, the call came from GTBank, halting the conversation. However, the story continues, with the article alleging that their editor, intrigued by the claims also decided to invest. The rest of the piece is a glowing testimonial from this alleged editor.
On Facebook, potential victims of this scam are urged to invest with Atom Capital, while on Instagram, the scam uses the same article, subjects, and claims but instead promotes the Spectra X Bot.
When you click on any of the tabs supposedly leading to more content from the publication, you’re instead redirected to the alleged Atom Capital and Spectra X websites. That’s where the real scam begins.
The Scam and the Red Flags
To begin with, the sites you’re redirected to are not the legitimate websites for Atom Capital or Spectra X. The legitimate Atom Capital website doesn’t make rosy promises as the scam site does. Instead, it issues a clear warning: only invest money you can afford to lose, as it is a high-risk investment.
On the fake Atom Capital website, this is the first question you see: “Is it impossible to turn Ksh. 33,000 into Ksh. 1,250,000 in 3 days?”
The site then claims that this level of returns is possible and you can achieve even greater returns with them. It further claims the platform was named the “Best Innovative Platform” by the Forex Awards 2024. We searched online for ‘Forex Awards 2024’, and from the results we obtained here, here, and here, Atom Capital is not mentioned anywhere.
Crucially, the language used on the sites is meant to convey a sense of urgency. Users are prompted to enter their details, followed by a call to action urging them to register quickly, as only a few slots remain.
At the bottom of the page are testimonials from individuals claiming to have made significant returns on their investments, giving the impression that people are earning passive income through the platform. Additionally, a statement purportedly from the Central Bank of Kenya is attached, showcasing how someone turned an investment of Ksh. 30,000 into over Ksh. 500,000 in just one month. This makes the opportunity seem even more enticing. However, a closer look reveals that the statement comes from the same account attributed to an alleged Michael Chumba, which appears to be fake based on the evidence so far.
The statements are questionable, because the Central Bank does not provide retail banking services to individuals, and crucial details, such as the currency being transacted, the dates when the transactions were carried out, and the source and destination of these funds, are missing.
The people behind this operation have one more way to convince anyone who may still be hesitant to invest – a list of consultants who supposedly vouch for their credibility. This list features well-known figures, including comedian-turned-activist Eric Omondi, Equity Group Holdings CEO James Mwangi, and journalists Willis Raburu, Betty Kyalo, and Victoria Rubadiri. Their images also display impressive account balances. This may lead potential victims to think, “These are respected individuals in society who seem to be thriving on social media. If I want to enjoy life like they appear to, I must invest.” This is another tactic scammers employ to manipulate their targets.
The same images and account balances also appear on the fake Spectra X website, with the only difference being that Betty Kyallo is swapped out for Larry Madowo, while the testimonial remains identical, word for word.
Crucially, the page impersonating Atom Capital claims that it operates with 98.7% accuracy, suggesting the probability of any mistake is virtually zero and guaranteeing that your investments will never result in losses. However, experts at Optimize Wealth Management caution the public against such promises, emphasizing that all investments carry some degree of risk and that unrealistic returns are often used to lure unsuspecting individuals.
Maina Chege, the interviewer who had spoken to Equity Bank CEO James Mwangi, dismissed the claim that Mr Mwangi had allegedly broken his silence and promoted a cryptocurrency trading platform. Chege posted a screenshot of a fabricated Facebook Messenger conversation between him and Mr Mwangi on his official Instagram handle, stating that the conversation it contained was fake, warning Kenyans not to engage with the page in question as it was part of a scam.
These coordinated sponsored ads were run on platforms like Crenfastli, Indian Invest, and Business Online on Facebook with topmarketsales.online, running the sham on Instagram. Although ads have a short shelf life and may no longer be active by the time you’re reading this, they perfectly illustrate the tactics scammers use. These ads are used to scam people without leaving a trace, as the links expire and data is deleted. However, Piga Firimbi has noted that these ads often resurface after some time.
The Prey
When I first encountered this scam, my immediate concern was for the elderly, but research has shown otherwise. Surprisingly, Gen Z is more susceptible to these scams than other generations. It’s ironic, given how tech-savvy Gen Z is, but this weakness can be attributed to their familiarity with technology – cryptocurrency trading and online forex trading in this instance, and their trust in the information they see on social media.
This doesn’t mean that other generations are immune to scams, but Gen Z is more susceptible, owing to the time spent on their devices. Everyone must be mindful of the links they click and the information they consume. Don’t fall for something just because it’s tied to someone you admire.
What does this mean moving forward?
As we remain vigilant on social media, Meta Platforms is facing a lawsuit in Japan over similar scam ads. The company could be liable for up to $2.8 million (Ksh. 360 million) in damages for failing to moderate fraudulent ads on its platforms. These scams, much like those seen in Kenya, use celebrities to lure people into false investments, leading to significant financial losses.
Meta is also facing legal action by Australian businessman and philanthropist Dr. Andrew Forrest, who argues that the social media giant’s advertising tools have enabled scammers to create false advertisements using his likeness to promote fraudulent cryptocurrency scams, which is similar to what this investigation has uncovered.
In a world where financial hardship fuels desperation, scammers have mastered the art of deception, preying on hope and trust. As this investigation shows, these schemes are no longer crude or obvious—they are polished, data-driven, and often rooted in half-truths. The digital age has given scammers a powerful stage, but it has also armed us with tools for awareness and self-defence. Scams like these thrive in silence and ignorance, and they could lead to significant losses. As the digital landscape evolves, so too do the tactics used by scammers—becoming more convincing, more pervasive, and harder to detect. Before clicking on these ads, sharing your personal information It is our responsibility to question, research, and verify before clicking, investing, or sharing.
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