- A Ponzi scheme is the last place you would want to invest in
- Unfortunately, they don’t present as Ponzi schemes when requesting investments
- To avoid losing your hard-earned money, these are the signs to watch out for
Hundreds of Nigerians have lost billions of naira to several Ponzi schemes in the last decade. Earlier this year, the Economic and Financial Crimes Commission (EFCC) revealed that in the last three years, it has received no less than 1,000 letters filed against Ponzi scheme operators on a monthly basis.
The Mavrodi Mundial Movement (MMM) will perhaps remain the most popular of these Ponzi schemes that have ever operated in Nigeria. So many Nigerians were victims of these schemes and so much money was lost when the scheme finally crashed in 2017. According to the Central Bank of Nigeria, investors lost about N12 million to MMM.
Even after the crash of MMM, you would think that many would learn their lessons. But no, more people seem to have shifted to patronising newer illicit schemes, repeating the same cycle.
Ponzi schemes are unverified investment platforms that promise investors high and mouth-watering interests on their investments.
The name comes from Charles Ponzi, a 1920s notorious fraudster who operated a scheme where he promised investors a 40% return on their investments in 90 days until its final crash.
Ponzi schemes’ survival is dependent on a constant flow of new investor…
