Kenya has witnessed a significant crackdown on gold scams, with 11 individuals arrested in connection to a $540,000 gold scam.
The suspects include two Cameroonians. Gold scams are prevalent in Kenya, often involving foreign nationals who are unfamiliar with local customs and market prices.
Scammers typically use fake documentation, identities, and lab reports to deceive victims. They promise large quantities of gold at favorable prices, demanding upfront payments for various reasons such as documentation expenses, security guarantees, and shipping costs.
In a similar incident, Puati Dally, a suspect involved in a KSh 13 million gold scam, was arrested while attempting to flee to Uganda. Dally and his accomplices had promised to sell gold to a Ghanaian merchant, requesting KSh 10.7 million for documentation expenses and later demanding an additional KSh 4.3 million for tax and clearance.
Kenyan authorities have emphasized the need for thorough due diligence and professional advice when engaging in mineral dealings. “Conducting thorough due diligence, seeking professional advice on mineral dealings, and being sceptical of deals that seem too good to be true are essential,” notes Mining Consults Kenya.
Gold scams in Kenya often exhibit certain traits, including unrealistic quantities and returns, fake documentation and identities, upfront payments, lack of physical presence, and off-market gold offers. Scammers promise large quantities of gold that cannot be found in Kenya, with high and quick returns on investments.
They present counterfeit documents, such as mineral dealers’ licenses and export permits, and demand upfront fees for various reasons. Scammers often operate remotely, avoiding detection by authorities, and claim the gold offered is “off-market” and cheaper, convincing victims to invest.
To avoid falling victim to such scams, it’s crucial to verify information through strategic government agencies and use reputable channels for transactions. Individuals should be cautious of deals that seem too good to be true and seek professional advice before engaging in any mineral dealings.