The Nairobi Securities Exchange Plc (NSE) has warned shareholders, investors, and the general public of a scam website, www.nairobiexchange.com that is defrauding unsuspecting members of the public.
This scam is being executed by impersonating the NSE and collecting money with a promise of returns from crypto-related investments.
The alert comes as more Kenyans get attracted to new cryptocurrency investment options.
The pandemic has also forced investors to trade online, creating an opportunity for scammers to prey on gullible traders that are trading away from the brokerage firms.
The entry of unlicensed forex traders, as well as financial scams such as pyramid schemes where investors are losing their hard-earned money, indicates a fertile ground in the financial markets for rogue players to thrive.
The bourse said in a statement that the said website also contains the name and logos of the NSE, without consent and thus constitutes a breach of NSE’s intellectual property hence it will be seeking legal redress regarding the same.
The NSE says the fake website (www.nairobiexchange.com) is not the official NSE website, which has the address www.nse.co.ke, or in any way connected with the NSE.
“In addition, it is instructive that the NSE does not collect money from investors for investment purposes, said the NSE bulletin.
Investors trade securities listed on the NSE through authorized brokers and investment banks.
To invest at the NSE, investors must open a Central Depository System (CDS) accounts with authorized trading members (stockbrokers), deposit money, and instruct the brokers to trade in particular securities.
The list of all the brokers and investment banks is available on the official NSE website, www.nse.co.ke.
The NSE offers equity, debt, and derivative investment products with 62 equity listings including a Real Estate Investment Trust and an Exchange Traded Fund.
The NSE does not offer crypto-based investment products or related technologies and trading platforms.
Members of the public are advised to access accurate and credible information about the NSE through the following digital channels:Website: www.nse.co.ke, Twitter: @NSE_PLC, Facebook: Nairobi Securities Exchange Plc and Instagram: @nse_plc
The NSE further stated that it has forwarded the case to the relevant government authorities for action on the website owner and possible accomplices.