Spread the love

30 Warning Signs of Investment Scams Nigerians Should Watch Out For

Nigerians Lose Billions to Ponzi Schemes as Fraudsters Exploit Economic Hardship

Nigerians continue to fall victim to financial scams and Ponzi schemes, with staggering losses reported in recent years. According to the Nigeria Deposit Insurance Corporation (NDIC), Nigerians lost a shocking N911.45 billion to fraudulent investment schemes between 1999 and 2022.

Video credit to: Forex Scam Alerts

These fraudulent operations prey on vulnerable citizens by offering unrealistic returns, particularly in a challenging economic climate. The latest scheme to dupe Nigerians was Crypto Bridge Exchange (CBEX), which promised investors a 100% return within just 30 days.

The Securities and Exchange Commission (SEC) has confirmed that CBEX was operating illegally without registration. Under Nigeria’s newly revised ISA 2025 law, operators of Ponzi schemes now face severe penalties including 10-year jail terms and fines up to N40 million upon conviction.

SEC’s 30 Red Flags for Investment Scams

To help citizens identify and avoid financial scams, the SEC has released a comprehensive advisory listing warning signs of fraudulent schemes:

Financial Transaction Red Flags

Requests to pay money to receive more money
Pressure to share verification codes sent to your phone
Payment required to claim “free” offers or prizes
Demands for upfront fees for loans or inheritances
Requests to use unconventional payment methods like gift cards or cryptocurrency

Too-Good-To-Be-True Offers

Promises of instant wealth with no effort
Guaranteed high returns with no risk
Secret investment opportunities
Unsolicited business proposals from strangers
“Miracle” cures or investment solutions

Behavioral Warning Signs

High-pressure tactics and urgent deadlines
Requests to keep transactions confidential
Refusal to provide verifiable contact information
Overly friendly communication that avoids business details
Threats or guilt trips to force compliance

Protecting Yourself from Financial Scams

The SEC emphasizes that any investment opportunity that sounds too good to be true likely is a scam. Fraudsters typically exploit emotions by offering fake solutions to financial problems or unrealistic returns.

“Always verify investment opportunities, ask detailed questions, and resist pressure to act quickly,” advises the SEC. “Your financial security is more important than any offer. Trust your instincts and don’t hesitate to walk away from suspicious deals.”

Investors are encouraged to verify company registration status through the SEC’s official website before committing funds to any investment opportunity.

Full credit to the original publisher: Business Day Nigeria

30 Red Flags to Spot Investment Scams Before You Lose Your Money