GOMA, DRC – A surge in sophisticated online fraud is targeting economically vulnerable populations in eastern Democratic Republic of Congo (DRC), specifically within areas under the control of the M23 rebel group. These schemes exploit the desperation caused by ongoing conflict and economic instability.
Reports indicate that cryptocurrency trading platforms, masking elaborate scams, are proliferating in cities like Goma and Bukavu. These platforms lure residents with the promise of rapid wealth accumulation through cryptocurrency trading. However, the reality is far more sinister.
The economic context is critical. With approximately 73% of the Congolese population living on less than $2 per day, and banks closed by Kinshasa authorities to prevent funding reaching the M23, many families and businesses face severe financial hardship. This creates an environment ripe for exploitation.
Participation in these platforms typically requires frequent engagement and the recruitment of new members. Early participants often see substantial gains, creating a veneer of legitimacy. However, digital experts warn that these schemes closely resemble Ponzi schemes or pyramid schemes. Returns for early investors are derived from funds deposited by new recruits. As recruitment slows, the system collapses, leaving those who haven’t withdrawn their funds with significant losses.
The DRC’s challenging circumstances – widespread poverty, banking closures, and persistent violence – make it fertile ground for cyber fraud. Desperate for alternatives, many are drawn to seemingly lucrative opportunities, often offered by phantom companies.
Crucially, these fraudulent entities lack official offices or any recognized presence within the Democratic Republic of Congo. This absence makes them difficult to track and hold accountable, further exacerbating the problem.
