Nigeria: Beware of Facebook Account Disguised As Popular Crypto Investment App and Offering Huge Returns

24 July 2023
Africa Check (Johannesburg)
By Muktar Balogun

IN SHORT: A Facebook post is offering users investments on behalf of a popular company in the cryptocurrency world. However, the company says users should be wary of people offering unrealistic returns.

"One amazing thing about the LUNO INVESTMENT PLATFORM Is That It Is Opened And Available For Everyone Who Have The Opportunity Once You Have Register With The Platform You Have To Make Your Investment Immediately And Your Payback Will Drop Into Your Account Instantly," reads a post on Facebook.

The post, dated 25 June 2023, also says: "LUNO INVESTMENT works in a save with the (CBN) which is CENTERAL BANK OF NIGERIA. Its Also Registered Under The Cooperate Affair Commission (CAC)."

Luno is a mobile application for cryptocurrency investments. It allows users to buy, store and explore crypto securely. Cryptocurrency is digital money in a decentralised system, with no central authority to manage or maintain its value.

Like many similar schemes we have debunked, this post also includes a WhatsApp number where users are encouraged to send messages in order to join.

The post is accompanied by three images, one of them appearing to show a credit alert on a cellphone for N600,000. Other users have posted their supposed proof of payment in the comments section.

We also found a similar post here.

But is this another scam? We checked.

What does Luno do?

With over 9 million consumers in 43 countries and a team of over 600, Luno is one of the market leaders in the cryptocurrency industry.

Luno operates in Africa, Asia, the US and Europe and was founded in 2013. The company has a website dedicated to Nigerian customers.

It is registered with the Nigerian Financial Intelligence Unit, the national agency responsible for the receipt and analysis of financial disclosures.

Luno does not offer cash investments, as claimed in the Facebook post.

The cryptocurrencies available to buy with the naira on Luno include Bitcoin, Ethereum, Bitcoin Cash, USDC, Uniswap, Cardano, Solana and Avalanche.

'Sounds like a scam,' says Luno

The company's official page on Facebook is Luno. It is "liked" by over 190,000 Facebook users, though its number of followers is hidden. It is also verified by Meta.

"This definitely sounds like a scam," a Luno representative told Africa Check on Facebook. The rep said the company does not recommend taking advice from third parties, especially those who promise unrealistic returns.

Scammers may pose as financial services providers in order to steal from users who think they're joining a legitimate scheme.

Africa Check has previously investigated similar false investment schemes here and here.

To help protect yourself against online scams, read our guide to Facebook scams and how to spot them.

Read the original story, with links and other resources.
Africa Check is a non-partisan organisation which promotes accuracy in public debate and in the media. Twitter @AfricaCheck and www.africacheck.org

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