The recent revelation that some investors had lost millions of shillings of their investment to a product linked to CIC Insurance raised eyebrows. The product in question had characteristics similar to a pyramid scheme, handling huge sums of money and promising high returns in short periods.
Business Daily’s George Ngigi interviewed the Insurance Regulatory Authority (IRA) Commissioner General, Mr Sammy Makove who pointed out an important aspect.
“If you are buying a proper product you use proper channels and get receipting. In this case the guys did not receive a receipt but were being given a statement on a letter signed by someone who is not employed by CIC.” Said Makove who termed the dealing agent as a thief who stole from people he knew well.
People who transact such amounts of money as said in this saga are dimmed to be well informed and are expected to know the importance of detail and verification. However, they were conned so easily with almost no evidence to prove they invested their money anywhere.
Makove says, “How these Kenyans fell victim shows how vulnerable citizens can be and that they should be more diligent when investing. It is only that the agent was operating from CIC offices that they cannot run from that.”
The attachment to the well known Insurance company could have played a big role in the con-agent’s success in defrauding the investors. However, the vigilant side of investment should take the best of an individual when they are committing their money to a cause.
So, before you put that hard earned cash to a plan that should work for you, make sure that plan will work for you.