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The Securities and Exchange Commission (SEC) says it has intensified its public awareness campaigns in response to the increasing cases of scams and fraudulent investment schemes in Zambia.
According to SEC Chief Executive Officer, Phillip Chitalu, the Commission remained committed to protecting investors and preserving market integrity by issuing regular public alerts and identifying unlicensed investment operations.
“We urge members of the public to be vigilant, look out for these alerts, and share them widely within their networks,” Chitalu said in a statement.
He revealed that during the first quarter of this year, the SEC identified three suspected investment schemes operating through social media platforms such as Facebook and WhatsApp.
These schemes, disguised as legitimate opportunities, encouraged participants to recruit others in exchange for monetary rewards and other incentives.
“To safeguard the public, the Commission promptly issued notices via its website and official social media platforms, warning that these entities, their promoters, and representatives are neither licensed nor authorized to offer investment services or solicit funds from the Zambian public.
“Additionally, their investment products have not been approved for sale in the local capital markets,” he stated.
Chitalu further cautioned that scams continue to evolve with advancements in technology and changing social trends.
He identified several common types, including phishing scams — fraudulent messages that appear to come from credible sources via email, text, phone calls, or fake websites — as well as Ponzi schemes, pyramid schemes, and employment scams.
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