A viral coffee marketing opportunity promising to double your money in weeks is likely too good to be true.
The ‘KenCo Marketing’ business has quietly spread across South Africa this year, with thousands believed to be involved.
New clients are invited to join by buying virtual coffee products, which would then pay them dividends over a set period and give them a profit.
They are told that by buying the virtual products, they will be helping to market the legitimate British KenCo Coffee brand, who are looking to expand their operations into South Africa.
No physical products are ever involved.
While the legitimate KenCo brand did not respond directly to questions from the Courier, they have denied any such promotions in South Africa via their Facebook page.
“Please be aware that this is a scam. Stay vigilant and cautious with any unexpected communications and offers,” wrote the company on Facebook earlier this year.
But new clients continue to join the fraudulent ‘KenCo Marketing’ scheme in hopes of finding a functional side hustle.
One such investor contacted the Courier and explained they had become involved after being referred by a friend who had made “almost a quarter of a million Rand”.
“I have a full time job but thought this looked like a good opportunity and the first buy-in level was cheap, only R90,” said the former KenCo Marketing investor who asked not to be named.
“So I bought in and the dividends were paid exactly like they had promised. I bought more and more products until I was in for about R15 000.”
It was only after speaking to the Courier that the investor even considered there might be something untoward going on.
“They are so convincing and I was making money, so I had no reason to think something was up. After a while, I started getting pressured to invite other people to invest and I did.”
After speaking to the Courier, the investor chose to withdraw their money and did so without issue, but they were later ‘fired’ after their new clients dried up.
When spreading the opportunity, investors are told that nobody under 25 can be involved and that nothing can be posted on social media in case “the wrong brand image gets out”.
Once invested, they are managed on WhatsApp groups by managers who allegedly refuse to take calls or respond via voice notes, using text alone from UK-based numbers.
A manager did not answer WhatsApp calls from the Courier but did respond to written questions on the matter saying, “If you have any questions, please send a lawyer’s letter to our company, and our legal department will contact you.”
Requests for further contact details went unanswered.
The Courier asked the South African Banking Risk Information Centre (SABRIC) whether the scheme met the criteria for financial fraud.
“What you describe has all the characteristics of a pyramid scheme,” said a SABRIC spokesperson.
In general practice, a pyramid scheme works by using money from new investors to pay those already invested.
As long as there are new people investing then the dividends can be paid without issue, but the problem arises when the critical mass of people starts dwindling.
Once no more money is coming in, the pot dries up and those already invested are no longer able to withdraw their funds.
That is why the recruitment of new people (new money) is so crucial for the operation.
How to report these scams:
SABRIC suggests that citizens report these schemes to Saps for a case to be opened and provide them with the following information:
• Name of fraudster company and website if available.
• How they first connected with the investor (online, Facebook etc.).
• Bank account number the deposits were paid into.
• Date(s) of transactions.
• Any contact numbers or email addresses supplied by the fraudster.
• All available emails or mobile phone communication made with the fraudster.
These scams can also be reported to:
• The National Consumer Commission at 012 428 7000 or visit their website www.ncc.gov.za
• The South African Reserve Bank (Bank Supervision Department contact details: 012 313 3911 or 086 112 SARB (086 112 7272).
• Tip off Reserve Bank at 0800 67 7772; email: SARBCBSU@resbank.co.za.
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