Investment Scams in Botswana
How fraudulent investment schemes target Batswana with high-return promises through unregulated online platforms and pyramid schemes.
Part of: Investment Scams
Last reviewed: 1 June 2026
Investment scams in Botswana exploit a population with growing disposable income and interest in financial growth, but limited access to broad investment education. Fraudsters present high-return opportunities — cryptocurrency funds, property pools, or forex platforms — through WhatsApp groups and Facebook, leveraging social proof and community trust networks.
Pyramid and multi-level referral schemes have also been documented in Botswana, where participants are told returns come from trading but are in fact funded by recruitment fees from new members.
How this scam works on Botswana
A Motswana is introduced to an investment platform through a trusted community member who appears to have profited. A broker explains the opportunity and encourages a starting deposit. Early withdrawals succeed. As the deposit grows, withdrawals are blocked by tax, verification, or minimum-balance requirements.
Some schemes operate as structured pyramid programmes with official-sounding names, attracting deposits before collapsing and leaving later entrants with no returns.
Common red flags
- Investment introduced through a social contact without independent regulation verification
- Platform not licensed by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) of Botswana
- Guaranteed monthly returns far above what regulated instruments offer
- Withdrawal blocked by new conditions after initial success
- Recruiter earns a commission for bringing in new depositors
How to protect yourself
- Verify all investment entities with NBFIRA before depositing any funds
- Be sceptical of any scheme that requires recruiting new investors to sustain returns
- Never deposit additional funds to unlock previous deposits
- Test withdrawal with the minimum amount before increasing exposure
How to report it
- Report to NBFIRA if an entity is operating without a licence or impersonating a licensed firm
- File a report with the Botswana Police Service Financial Crimes Unit
- Alert your bank immediately if a transfer was made
Frequently asked questions
What is NBFIRA and how does it protect Batswana investors?
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) regulates non-bank financial entities in Botswana, including investment firms, insurance companies, and pension funds. It maintains a public register of licensed entities. Checking this register before investing is one of the most reliable ways to avoid fraudulent schemes.