Money Management
November 11, 2024
In the age of inflation, rising unemployment, and financial insecurity, more people are looking for ways to make passive income. Without proper financial literacy, it’s easy to get baited by fake gurus out to sell a scam.
Fake hustlepreneurs are people who pose as financial or investment experts. They promise a lucrative outcome in return for paid tutoring, coaching or a book. Fake hustlepreneurs are especially dangerous because they primarily target people who have the desperation or vulnerability of clients who need to make money.
They are modern-day snake oil salesmen who sell credibility by flashing wealth, such as cars, mansions, or expensive vacations. With how quickly information spreads on the internet, it’s easy for fake hustlepreneurs posing as legitimate coaches to scam many people before they’re finally exposed.
In the past, travelling salesmen would visit towns selling all sorts of products. One of these was "snake oil," which they claimed could cure just about anything—from a cough to heart disease. These salesmen were known for being smooth talkers who would say anything to make a sale. Over time, "snake oil salesman" became a term for someone who sells fake or worthless products by making exaggerated promises. In modern times, these people are commonly referred to as fake hustleprenuers.
The fake hustlepreneur will promise great riches if users sign up for their class or buy their book or instructional PDF. They provide fake proof by using unverifiable testimonials where a former student claims they managed to make a lot of money by following the advice of the fake tutor. In addition, they can post displays of wealth to sell their schemes. The material sold is usually non-refundable, shallow and unhelpful to any user’s unique situation.
Read more: Money Confessions: At 39, I am a Broke “Rich Kid” Living in My Mum’s House
The fake hustlepreneur touts a startup as one of the best ways to generate income. They will offer to guide a user in their startup journey. They will ask for business proposals, plans, and other documentation which they can then sell as their own work.
The fake coach doesn’t have a portfolio of startups they’ve helped launch. If they do, the companies aren’t fully operational or are linked back to them rather than being standalone companies. They can also charge for a shallow course about how to launch a startup.
One of the best ways to find opportunities is through networking. Fake finance gurus know this. They will sell tickets to an event where they lie that well-known financiers will be speaking. The event brochures will have logos close to existing brands so that potential clients won’t notice.
They will generate credibility using a speaker who has no affiliation with their brand. Using this person’s reputation, the fake hustlepreneur will host other events but their previous speech will be replayed or used to get other legit speakers.
Fake hustlepreneurs are fond of selling high-risk, high-reward investment opportunities. However, they will choose opportunities that aren’t verifiable such as non-fungible tokens or cryptocurrency. They can also use Ponzi scheme tactics to convince multiple people to invest with their platforms. Fake hustlepreneurs use NFTs and crypto because of the knowledge gaps that exist there.
MLMs are schemes where individuals get results, not by physical sales, but by recruiting other people to join the company. Individuals get rewards by meeting a certain quota of sign-ups. Once recruited, the fake hustlepreneurs will then give a percentage of the fee promised for recruiting people. They then promise to pay the rest once the people recruited bring in more people.
Read more: Top Scams that Have Swindled Kenyans in 2023
These are individuals who find ways to make money legitimately. Hustle entrepreneurs also start small to grow their businesses through hustle rather than the traditional route of capital. They will use methods such as cold calls to make sales or freelancing. There are also real financial coaches who help people with specialties.
Financial coaches also have specific expertise. A legitimate financial coach will help clients based on how their needs and budgets are. Financial advisors, known as fiduciaries, are also limited by specific rules and regulations. According to the Kenyan constitution, a fiduciary has to act for the benefit of their client. They must also get fiduciary certification.
Legitimate digital financial counsellors will have certification, offer interviews and have values that align with their users. Legit coaches also receive periodic fees rather than earning commissions whenever you sign up for products.
The target audience for fake hustlepreneurs is college students, or people who have newly joined the job market. They find them in schools, churches, networking events, or on social media.
When a user comes across a fake hustlepreneur, they can identify their agenda by looking out for the following.
Fake hustlepreneurs never show their real selves on social media. They will curate their feed to appear wealthy, such as showing bank statements or screenshots of investments. They will also take photos in luxurious locations, private planes, or surrounded by merchandise. Fake hustlepreneurs are also never clear about how they gained any wealth before becoming coaches.
Fake hustlepreneurs will give many free products to sell their legitimacy. This can include free copies of summaries of their instruction books. In addition, they get multiple people to sign up for their courses by saying that access is free for a limited time. During which they mine data which they can sell to third party apps that buy personal info. When fake hustlepreneurs reach their targets for sign-ups, they then close the website.
Because fake hustlepreneurs are out to make a quick profit, they will put out incomplete information to target marks. They put on a front that makes it appear as if their classes are in-depth but when anyone digs, they find a lot of missing blocks.
For instance, when a fake hustlepreneur wants clients to sign up for a cryptocurrency, they provide vague instructions and don’t fully outline the risks involved. They play up the potential profit from investing in crypto but don’t disclose the affiliate link where they earn a fee with every sign-up.
Some fake hustlepreneurs put up flashy videos on social media or YouTube to get people to visit the website with the course or textbook they’re touting. However, the website isn’t always well-constructed. It may have progressive courses that fall off or ask for an extra fee to get a full course that never materialises.
1. How does this finance coach make their money?
2. Do they have visible and verifiable sources of income?
3. Do the partner or client logos match the real ones?
4. Did they appear out of thin air?
5. Is their advice riddled with jargon from motivational speeches or practical advice?
6. Do they offer one-on-one advice or only speak in generalities?
7. Do they ask for too many details?
8. Are there informational seminars or just social mixers for networking?
9. Are they overpromising or being realistic about how investment works?
10. Do they use language frequently found in toxic hustle culture?
Read more: Five Reasons Why People Get Scammed – Money Psychology
Victims may feel intimidated to share information exposing fake hustlepreneurs with a large social media following. Those who have fallen for such a scam may also feel embarrassed.
Sharing what happened on social media can let others know to avoid a fake hustlepreneur. However, the witness needs to be sure they can face the fallout that comes with putting a popular person on blast online. Non-confrontational users can also post the accounts of fake hustlepreneurs on buyer beware accounts to help others avoid them.
Reporting fake hustlepreneurs to the Directorate of Criminal Investigations (DCI) can also help when large sums of money are lost when signing up for fake hustlepreneur courses. Reporting the pages of the fake hustlepreneur to the safety team of a social media platform can get them taken down.
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