Police have arrested 11 people over alleged involvement in an online investment scam in which members of the public were reportedly lured into paying money for shares and housing projects that did not exist.
The suspects allegedly operated through WhatsApp and Instagram groups using names including C2203 VDC Dawn, VBCL Business Company Ltd, Fine Modern Homes and Fine Group of Companies, according to police.
Police said the suspects allegedly used the names of Prof Vincent Mwakatobe, Rebeka Mponzi and Andrew Komba to give the schemes an appearance of legitimacy and win the confidence of potential victims.
The suspects allegedly circulated advertisements containing links directing interested people to make payments through bank accounts provided by the operators.
Victims were reportedly promised opportunities to buy shares in international markets, including the Dar es Salaam Stock Exchange (DSE), London Stock Exchange and US markets, or to have houses constructed after making specified payments.
Police, however, said the agreements presented to victims were fake and that the transactions amounted to online fraud.
The Dar es Salaam Special Police Zone said investigations were continuing as officers worked to identify and arrest other people allegedly involved in the scheme.
Among those being sought are individuals accused of acting as promoters, allegedly encouraging members of the public to join the schemes and assuring them that the businesses were legitimate.
Police said the investigation would establish the full extent of the alleged fraud and the roles played by the suspects.
The arrests have also prompted a fresh warning to Tanzanians to exercise caution before investing in businesses advertised on social media, particularly those promising access to lucrative international investments or property ownership.
Police urged members of the public to verify the registration, ownership and operating licences of companies through relevant government authorities before transferring money or signing investment agreements.
They also advised potential investors not to rely solely on social media advertisements, online groups or recommendations from promoters when deciding where to put their money.
Police said members of the public should report suspicious investment schemes to authorities rather than making payments based on unverified claims.
The force said investigations were ongoing and that further arrests could follow.