Obinna Chima writes on the need for Nigerians to become security conscious and be able to identify fraudsters and fraudulent investment schemes
Poverty, lack of financial literacy and greed have been identified among the reasons for the growing number of persons that fall for the activities of illegal investment companies as well as Ponzi scheme operators.
In addition, the undying and unrestrained appetite for get-rich-quick syndrome has also seen operators of such schemes swindle unsuspecting members of the public. Ponzi scheme operators also capitalise on the harsh economic environment to offer unrealistic returns on investments to gullible persons with Nigerians reported to have lost billions to criminals masked as investment portfolio managers. These illegal schemes have also expanded through the use of online services.
Unfortunately, there had been reported cases of retirees who have fallen victims by mistakenly ‘investing’ their severance package on such schemes and are either heartbroken or had been forced to commit suicide.
A Ponzi scheme, according to Investopedia, is a financial arrangement where investors contribute money to portfolio managers who promise them high return and are paid out with the incoming funds contributed by later investors. It is closely related to a pyramid because it revolves around continuous recruiting, but in a Ponzi scheme the promoter generally has no product…
