By Tkay Nthebe
Tsietsi’s contract was extended by 6-months, allowing him to save a total of LSL 5,000.00. With this money, the plan was to start a poultry business with the goal of increasing his sources of income. While socialising at a local hangout spot in Mafeteng, a friend – Bokang introduces Tsiesi to an “investment” opportunity that promises double digit returns within two weeks. The prospect of doubling his LSL 5,000.00 in such a short space of time is exciting.
On Monday, Tsietsi and Bokang deposit the LSL 5,000.00 with a “Trader” and the two-week wait begins. While waiting, Tsietsi’s struggles to get a good night’s sleep because he keeps asking himself “have I made the correct decision?”
After two weeks, Tsietsi visits the Trader’s office and walks out with his LSL 10,000.00. Excited that things indeed worked out, he decides to take a risk and deposit the LSL 10,000.00 again. The idea of receiving LSL 20,000.00 in just over two weeks will definitely be a game changer for Tsietsi and his family. Again, Tsietsi’s anxiety keeps him up at night as him ponders on the risk he took. Is it even worth it?
Tsietsi wakes up early on Monday, hoping to collect the money from the Trader’s office on his way to work. To his disappointment, the Trader’s office is vacated – with no sign of it ever being an office. Tsietsi is a victim of a SCAM, losing his money – the LSL 5,000.00 meant to kickstart his business. If you were Tsietsi, how would you suggest he approached the “investment” opportunity?
How to avoid losing your hard-earned savings to scammers;
- Licensed institutions: Only do business with financial service providers (FSP) licensed by the Central Bank of Lesotho (CBL). The licensee should be always display the license and should you want to verify, a list of licensed institutions is distributed quarterly and is available online.
- Understand investments and risk: In trying to make investments many people fall victim to fraudulent scams. Before investing your hard-earned money, educate yourself on what legal investment opportunities are available, how they work and have a clear strategy. Equally important is to practice patience, understand how much risk you are willing to take.
- Avoid pyramid schemes and social media scams. With a rising spike in the number of pyramid schemes and social media scams via WhatsApp, Instagram and Facebook, we must be vigilant of people luring us into “investment” opportunities that aren’t legal. I had a friend who was offered an inheritance of USD 5,000,000 (equivalent to LSL 70million) on Instagram by a lady who is allegedly dying in the U.S.A and asked to share his banking details, which could lead to cybercrime.
Not every opportunity is legit, legal or meant for you. Let’s do thorough research before making investment decisions, even if it comes from a best friend such as Bokang. “Ha re etseng liqeto tse chatsi tsa lichelete re ahe leruo!”
Disclaimer: The views and opinions expressed in this article are those of the author.
