Risk of scam

Risk of scam when investing in loans

In my article regarding borrower’s default, I stated that borrower’s default was the main risk when investing in loans. After many platforms turned out to be scams in early 2020, I’m unfortunately starting to reconsider this statement.

Kuetzal and Envestio indeed turned out to be scams in January, while Monethera disappeared in March 2020, citing coronavirus as an excuse.

Statement from Monethera
Statement from Monethera

Grupeer’s whole situation is still unclear, but it’s now clear that several loans listed on the platform were fake. For example, one building company denied funding any project through Grupeer, and several loan originators from Russia don’t have a license to operate there.

Loan from Northcon Norge on Grupeer's website
Loan on Grupeer’s website
Company's denial
Company’s denial

At the same time, on a positive note, several loan originators confirmed working with Grupeer.

The situation can be discussed in the Telegram group for Grupeer.

Needless to say that although several platforms are still praised for their trustworthiness and reliability, it’s very hard for investors to have much trust towards platforms in the Baltics as a whole until there’s some regulation – which is scheduled for 2021 -.

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