At RIoT Secure AB, we believe transparency and integrity are as important as technology and innovation. Today, we want to share an important experience that highlights the need for vigilance in the startup and investment ecosystem. There unfortunately are individuals out there who attempt to take advantage, or exploit even the best of us.
We were approached by a company identifying itself as SHIGA INVESTMENT CO LTD with an offer to invest.
The discussions looked legitimate, and documents such as a Letter of Intent and Terms & Conditions were exchanged. However, upon closer examination and due-dilligence on our side, we discovered irregularities that raised serious concerns. One document included a standalone signature page - separate from the agreement text - which could be misused to falsify or alter contracts. This poses significant risk.
The moment we identified these issues, we took immediate action:
- We ceased all engagement with SHIGA INVESTMENT CO LTD,
- We formally revoked the signature page, making clear it is null and void.
- We are reporting the entire matter to the appropriate authorities in Sweden, Japan, and internationally.
We are making this statement public to protect not only RIoT Secure AB, but also others who may be currently being targeted by similar schemes and be on the lookout for any red flags - definitely take them seriously!
Why this matters
Fraudulent “investors” are unfortunately a reality in today’s interconnected world. They prey on innovative companies who are actively seeking capital to scale. By sharing our experience, we hope other founders and startup's are well aware of these types of scams, even if they appear legitimate - teams should take extra care:
- Always verify that an investor is properly registered with financial authorities.
- Be cautious of standalone signature pages or requests that don’t align with standard legal practice.
- Seek legal and financial advice before signing any document, even a term sheet.
- Always sign or initial every page of a document - make this a practice to reduce fraud.
Always keep in mind - a genuine equity investor accepts that their capital carries risk - they should not be asking you to purchase obscure insurance or protections such as an "Equity Security Guarantee Insurance (ESG) Certificate".
Our commitment
This incident will not distract us from our mission. RIoT Secure AB remains focused on bringing trust, security, and scalability to IoT through our patented technologies and future-ready architecture. We share this experience to safeguard our ecosystem, and to remind everyone that integrity and vigilance are just as important as innovation.
If you have questions or concerns - or if you’ve faced similar situations and want to compare notes - we encourage you to reach out. Together, we can keep our innovation ecosystem strong, secure, and trustworthy.
