The lack of rules governing South Africa’s cannabis market has not prevented millions of rands being invested in the sector. There are hundreds of legitimate investors seeking opportunities in the ‘grey zone’, particularly those that are likely to be compliant when a commercial framework is finally introduced.

There are also scores of chancers looking to dupe investors into buying into bogus cannabis investments and making off with their money.

Specialist private investigator Mike Bolhuis, who’s team is trying to track down alleged cannabis fraudster Michael Webb, says every scam comes with red flags.

5 Red Flags

These are the five red flags that people looking to invest in the cannabis space (or any other non-regulated investment opportunity) should be aware of:

Guaranteed High Returns: Be cautious of investments promising unusually high, guaranteed returns with little to no risk. If it sounds too good to be true, it usually is.

Lack of Regulation or Documentation: Legitimate investments are typically regulated and require proper documentation. If you cannot find information about the investment's regulatory status or receive official documents, be wary.

Pressure to Act Quickly: Scammers often pressure you to make immediate decisions. Take your time to research and consider any investment opportunity thoroughly.

Unsolicited Offers: If you receive unsolicited investment offers via phone, email, or social media, be cautious. Reputable investments are usually sought out, not pushed onto potential investors.

Complex and Vague Strategies: If the investment strategy is overly complex or the details are vague, it may be an attempt to hide the true nature of the investment. Make sure you understand where your money is going and how it will be used.

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