Sleuths based at the Directorate of Criminal Investigations (DCI) Nairobi Regional Headquarters successfully launched an operation and captured a financial fraudster operating in the Kimbo area of Thika Road.
The fraudster, identified as Dan and aged 30 years, was accused by numerous persons, who lost millions of shillings, of fraud. He operated as a forex trader.
His alleged victims launched a complaint to the police upon which extensive investigations began and the suspect was later accused of misleading and exploiting members of the public who were seeking financial gains through forex investments.
The DCI, after nabbing the mastermind, asked individuals who may have been defrauded or lost money to come forward and report their cases at the DCI’s Nairobi area offices.
The investigations agency also called on Kenyans to remain vigilant as financial fraud remains a significant risk.
What is Forex
Forex trading is a form of online investment where traders make money by buying and selling currencies, profiting on the marginal difference between two currencies.
“One makes profit by buying a currency that gains value in a buy trade and selling a currency that its prices drop in a sell trade. Losses occur when the opposite happens,” the Capital Markets Authority (CMA) elaborates.
In Kenya, the forex trading market experienced a surge in interest after the Capital Markets Authority (CMA) began regulating the market in 2018 allowing retail traders, brokers and investors to participate in the market.
CMA does not regulate individual traders. It, however, regulates brokerage firms and traders are advised to select a CMA-regulated broker when choosing one, to ensure they are protected from fraudulent activities.
“Kenyans are warned against engaging in online forex trading through platforms of licensed entities as they risk losing their investment and may not be protected by law,” CMA advises.
In May 2024, a senior police officer based in Eldoret was scammed off Ksh.800,000 in an elaborate Ponzi Scheme. The loss triggered among other things, the breakdown of a decade-long marriage.
A few years ago, about twenty Federal Republic of Somalia MPs were left in a lurch after a swindler, only identified as Abdalla disappeared with an estimated Ksh6 billion of their money. The legislators were duped into believing was a forex-trading company under the name Maalin. Maalin was operated out of the bustling Eastleigh estate in Nairobi and Abdalla promised to multiply investors’ money at exponential rates – the classic trap for a Ponzi scheme.
The Directorate of Criminal Investigations reminded members of the public to be wary of offers that seem too good to be true and to ensure that all investments are made through licensed and regulated entities.
Source: kENYANS.CO.KE