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Beware – EFCC Is Currently Investigating Ponzi Schemes

The Economic and Financial Crimes Commission (EFCC) has kicked off raid against Ponzi Scheme operators.

This was contained in a statement by Ayo Oyewole, the Head of Public Affairs, Ibadan Zonal Office of the EFCC, last week .

A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organisation, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

Typically, well-above-average returns are promised on the original investment and vague verbal constructions such as “high-yield investment programs”, or “offshore investment” might be used. The promoter sells shares to investors by taking advantage of a lack of investor knowledge or competence or using claims of a proprietary investment strategy which MUST BE kept secret to ensure a competitive edge.

lot of people know that these schemes don’t last, so they get in fast and get out. Hoping to not loose their money while not caring about others who would loose theirs.

It’s very common to hear ‘ I lost in scheme A but I gained in scheme B’. These people are proud of it.

The main problem in Nigerian Ponzi schemes is that half of the time, you’re paying directly to admins/programmers/guiders and their families. They will deny it but you don’t know who you’re paying to. there’s no transparency. That’s why they all crash quick and suddenly.Some will come here mentioning some big Ponzi schemes but it’s all the same.

It’s a bunch of Nigerian and South African men and women taking your money and that’s what annoys me about the schemes. There’s nothing we can do but sit down and look while young boys become millionaires by taking from others.