Young people are being entangled into the online forex trading web in the rapidly expanding digital economy of Kenya. The glamour is difficult to resist with glitzy ads, claims of easy money and influencers displaying lavish lifestyles. Trading is viewed as one of the solutions to unemployment or additional income by many students and fresh graduates. This enthusiasm has unfortunately made them easy victims of the forex scams, which capitalize on the greed and lack of experience.
The forex scams can take place in the open compared to the traditional investment opportunities. Fraudsters act as mentors, trainers, or even legitimate brokers and make the use of convincing language and falsified trading performance to sound legitimate. They promise to put in twice or they give the signals of guaranteed profits, which are to be given daily. These fraudsters are able to use social proof, persuading young merchants using testimonials, fabricated screenshots, and edited videos. What begins with a small deposit has the potential to turn out with lost money and being unable to communicate.
These scams have increased with the advent of social media. Tik Tok, Instagram, and Telegram are full of self proclaimed gurus that have mastered the forex market. Their processed videos and inspirational material makes it seem successful. A large number of these influencers have their own groups in which they charge their members to be part of their exclusive trading strategies. In the real sense, these organizations are mostly structured to channel funds towards fraudulent activities. The swindlers vanish when they have received the payments and leave the victims frustrated and humiliated to report the loss.
Some real traders and financial educators in turn are attempting to blow the whistle on these tactics. They lay stress on the need to utilize a controlled forex broker instead of using people who promise something impractical. A licensed broker offers transparency, availability of viable trading platforms and transparent withdrawal policies. These measures are used to prevent the pitfalls that provide no responsibility to the traders. The trick, though, is to make youngsters believe that it is skills and patience, rather than luck, that will make them gain sustainable profits.
Awareness campaigns to the community are gradually taking effect. Financial literacy programs, including the lessons about the scams in investment, have become integral to universities and other youth groups. They educate the students on how to check the licenses of brokers and how to avoid push sales, as well as to doubt the statements which seem too good to be true. This increased awareness is essential, since online frauds are constantly evolving in order to keep pace with the laws and prevention. Teachers are equipping young traders with information and helping them make wise choices by disseminating reliable information that would assist them in making decisions before putting their money into an investment.
Nevertheless, this issue continues because fraudsters are getting more advanced. Others go on to use cloned websites which fake brokers including customer service chat and false trading solutions. Other people develop referral programs like pyramids where they can get commissions when recruiting new investors. The more the schemes are multiplied, the more obvious the necessity to have stronger consumer protection and regulation over their activities. Officials still issue warnings to the masses, but it is hard to enforce in a digital society where fraudsters can disappear overnight.
The young Kenyan population should eventually understand that they cannot succeed in forex by cutting corners. Better options would be to select a reputable forex broker, train on demos and come up with long term strategies than to chase promises on the internet. The vision of making money is appropriate but it must be established through knowledge, patience and even awareness. Only in such a way, young traders can change forex in an opportunity rather than a trap.