By: Augustina DAN-BRAIMAH & Michael APALBILAH B.Y
Africa’s digital economy is booming, transforming the way businesses and consumers transact. From mobile payments to e-commerce, online transactions are becoming the norm. To keep up, governments across the continent are rolling out ambitious digitalization programs, driving innovation and financial inclusion.
But with rapid growth comes new challenges—cyber fraud, online scams, and vulnerabilities that test the strength of financial systems. In response, central banks are tightening regulations, striving to balance innovation with security.
As legitimate businesses thrive, scammers have also gone digital; become sophisticated and are constantly refining their tactics to deceive the unsuspecting public. Many of these scammers target individuals outside Africa, luring them with fake government contracts, fraudulent precious mineral deals, or even romantic relationships.
You may have come across stories of so-called “African Princes” offering gold deals, oil blocks, even looking for love on the internet, or government parastatals chasing after businesspeople with lucrative contracts. The victims of these scams suffer significant financial loss, emotional distress, and even legal complications.
To stay ahead of cybercriminals, here are 10 key warning signs and practical tips to safeguard yourself from becoming a victim of such scams.
- Too-Good-to-Be-True Offers
This might sound like a broken record but if it seems too good to be true, it probably is. Scammers love sending unsolicited too-good-to-miss offers to their targets. These could include fake government contracts, high-return investment opportunities, or even a surprise inheritance from a long-lost relative.
At some point, you may have come across an email or conversation promising a return of, say, $10,000 in just one week after investing $500—guaranteed and risk-free! This is a major red flag. High returns with no risk are unrealistic, as legitimate investments never guarantee such profits. Promises of quick, exponential gains are often telltale signs of swindles or Ponzi schemes.
Always be suspicious of unsolicited emails asking for personal information or upfront payments. For instance, an unsolicited email demanding sums of money to process a government contract is a red flag as genuine government contracts are not awarded that way.
Procurement laws govern legitimate contracts, and all contract-related communications are conducted through official channels. While some official portals may require a fee to access bidding documents, these fees are typically modest.
Most African countries have established public procurement legislation, often influenced by international frameworks like the UNCITRAL Model Law on Public Procurement. No legitimate government will invite you to bid via a shady email address like “[email protected].” Official procurement processes follow established protocols and use verified government domains.
- Don’t let love blind you
In 2022, nearly 70,000 people in the United States of America reported a romance fraud, and the reported losses hit a staggering $1.3 billion.[1] The average reported loss being $4,400. Romance scammers might promise marriage or a lifelong partnership after only a few online interactions.
Scammers often fabricate urgent situations—such as travel expenses, medical emergencies, or other pressing needs—to manipulate victims into sending money. A major red flag is any urgent request for financial assistance, especially if secrecy is emphasised and the person avoids meeting in person.
If someone you have never met is asking for money, be extremely cautious, it is likely a scam.
Sometimes, romance is just a front for a larger scam. A popular tactic targeting diasporas eager to reconnect with their roots involves a fabricated inheritance scheme. Scammers claim that their romantic partner—often the diaspora—is set to inherit a large estate but must first pay legal or administrative fees to secure the inheritance. However, in most African countries, the state or courts manage inheritance matters, and any legitimate process can be independently verified.
Scammers today often pose as military officers on active duty in remote areas. After catfishing their targets and gaining trust, they convince victims to buy items online and have them delivered to a supposed residence, promising to repay once they regain access to online banking. Believing they have the scammer’s address, victims feel secure and pay without verifying. Only later do they realize the scammers never lived there, and the purchased items are gone.
If you have to send money or make significant commitments, verify the person’s identity through independent sources, such as a lawyer, a professional investigator or trusted local contacts.
- Unsolicited and irregular communications
Be cautious of unsolicited emails, certificates, court orders and letters especially those that contain poor grammar or use incorrect terminologies. For instance, a letter claimed to be from the Attorney General of Ghana, which has inscriptions such as “The Federal Republic of Ghana”, is a red flag. This is because the Republic of Ghana is a unitary state. Similarly, if an official letter from Nigeria does not indicate that it is a “Federal Republic”, no significant action must be taken based on such a document alone.
In addition, legitimate government communications are unlikely to come from generic email addresses (like Gmail or Yahoo) and should not pressure you into immediate action. Official email addresses usually have the country’s official domain code, followed by a domain that indicates government affiliation and the name of the particular ministry or department.
Here is a handy list of country codes for the top 12 economies in Africa[2] to help you identify official government emails:
| South Africa: @gov.za | Egypt: @gov.eg | Ethiopia: @gov.et | Kenya: @go.ke |
| Democratic Republic of the Congo: @gouv.cd | Nigeria: @gov.ng
|
Morocco: @gov.ma
|
Angola: @gov.ao
|
| Côte d’Ivoire: @gouv.ci | Ghana: @gov.gh | Algeria: @gov.dz | Tanzania: @go.tz |
- Verify identities
Scammers may pose as government officials, business executives, or wealthy individuals. One must always ask for verifiable credentials, such as official government IDs, business registration documents, or proof of employment. If the individual or company is legitimate, they should have no issue providing this information.
After getting this information, a prospective investor can always double check by looking at websites and social media profiles, verify the legitimacy of the business through credible sources like government registries, professional directories, or industry associations.
Another way of confirming identities is demanding references and referrals. When there are no reputable organizations you can easily contact to validate the information you have been given, you may be dealing with a scammer.
- Resist FOMO; do not be pressured
Scammers create a sense of urgency, pressuring victims to make quick decisions without taking the time to verify information. Victims often labouring under the fear of losing out ignore red flags or make uninformed decisions.
Whether it is a limited time offer on a government contract or an emergency that requires immediate financial assistance, do not let urgency cloud your judgment. Take the time to thoroughly investigate before proceeding. Scammers tend to demand advance payments or fees to participate in bidding processes or access “exclusive” investments. Genuine opportunities generally do not require upfront fees.
It is always better to be safe than sorry!
- Seek Professional Advice
Before entering into any contract or sending money, it is wise to consult a legal professional, particularly one familiar with international transactions, and expertise in the law of the country in which the business will be transacted. They can help you verify the legitimacy of the offer and provide guidance on how to proceed safely.
A local lawyer can conduct thorough background checks on individuals, businesses, and contracts to ensure their validity and detect potential red flags before any agreements are signed.
- Use Escrow or Third-Party Services for Large Transactions
For significant financial transactions, especially in business contexts, consider using escrow services or a trusted third-party intermediary. These services protect both parties by ensuring that funds are only released when the agreed conditions are met. It is a great way to add an extra layer of security and ensure that both sides fulfill their obligations before money changes hands.
- Be Wary of Unverified Payment Channels
Whether dealing with a business contract, romantic partner, or investment scheme, using verified payment methods is critical. Avoid sending money through untraceable channels or to third-party accounts. Stick to secure and traceable payment methods such as bank transfers with verified accounts or official payment platforms.
They come in handy after a victim has been scammed. Be cautious of anyone requesting payments through unconventional methods, such as cryptocurrency or gift cards, especially if they are pressuring you to act quickly.
- Limit Your Exposure to Sensitive Information
Scammers use personal, financial, or corporate information to manipulate victims further. Whether in a personal or business context, protect yourself by:
- Sharing Minimal Information Initially:
Only provide essential details after verifying the other party’s legitimacy. Personal information, bank details, and confidential business information should be shared sparingly.
- Beware of Phishing Attempts:
Scammers attempt to collect user information through fake promos, offers, emails or websites. Verify the legitimacy of any communication before clicking links or downloading attachments.
That enticing pop-up promising you a free iPhone 16 in exchange for a simple click is likely a phishing scam designed to steal your personal information. Phishing attempts can also be more sophisticated, such as emails posing as official bank communications with alarming subject lines like “Urgent: Your Account Has Been Suspended!” These messages often warn of suspicious activity and urge you to click a link to “verify your identity” or “reactivate your account”.
To protect yourself, always verify the sender’s email address, avoid clicking on links in unsolicited messages, and visit official websites by typing the URL directly into your browser. When in doubt, contact your bank or service provider directly to confirm the legitimacy of any request.
- Report Suspected Scams
If you suspect you are being scammed, report it to the relevant authorities in your country. Doing so helps keep the authorities informed on scammers’ new tactics and protects others in the future. They may also be able to help track down the scammers’ identities.
Additionally, you may engage a local lawyer to assist in the recovery of all funds lost due to the scam.
Conclusion
Online fraud is a real threat, but with caution and vigilance, you can protect yourself. Taking your time, verifying information, and seeking professional advice can prevent both financial loss and emotional distress. By staying skeptical, asking more questions, and consulting trusted sources, individuals and businesses can confidently navigate opportunities while safeguarding their interests.
Remember: Take your time, consult, and always ask more questions.
[1] United States of America Federal Trade Commission
[2] https://www.statista.com/statistics/1120999/gdp-of-african-countries-by-country/
[i] [i] The authors are lawyers at AB & David Africa, a pan-African business law firm with independent offices in six (6) countries and a network of firms in 30 African countries.
Augustina is an Associate at AB & David Africa. She specializes in advising the firm’s numerous clients in finance, corporate and tax matters, and has particular interest in assisting SMEs. She coordinates the Banking & Finance Group and SME & Start Ups practice area for the AB & David Ghana office. Augustina’s practice also covers assisting businesses to access finance and upscale by taking advantage of AfCFTA market opportunities.
Email: [email protected]
Michael Apalbilah B.Y coordinates the Public Sector Advisory & Government Business and Africa Trade Practice at AB & David Africa. He holds a DALF C1 certification from the Centre International d’Études Pédagogiques in France.
Email: [email protected]
