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Nigerians keep falling for scams and Ponzi schemes. In 2022, the Nigeria Deposit Insurance Corporation (NDIC) revealed that Nigerians lost N911.45 billion to Ponzi and related fraudulent activities in the last 23 years.
These fraudulent schemes offer financial deception and unfulfilled promises, thriving on the hopes of a quick return on investment, particularly in a country battling economic challenges. Recently, many Nigerians fell victim to Crypto Bridge Exchange (CBEX), which promised investors a 100 percent profit in 30 days.
However, according to the Securities and Exchange Commission (SEC), CBEX was unregistered and operated illegally, and under the newly revised ISA 2025, operators of Ponzi schemes now face a 10-year jail term and a N40 million fine when convicted.
Read also: Financial market literacy seen curbing Ponzi schemes
Ponzi schemes are illegal under Nigerian law, and to protect Nigerians from falling victim to more scams like CBEX, the SEC has released a scam advisory. According to the regulator, here are 30 signs of a scam:
1. Paying money to get more money? Likely a scam.
2. Asked to share a code sent to your phone? Be cautious.
3. Promised instant wealth with no effort? Red flag.
4. A deal that sounds too good to be true? It probably is.
5. Pressured to act fast without time to think? Be wary.
6. Unnecessary requests for personal info? Think twice.
7. A “secret millionaire” offering you money? Unlikely.
8. Something “free” but requires payment first? Scam alert.
9. Won a prize but need to pay to claim it? It’s fake.
10. Inheritance from an unknown relative? Highly suspicious.
11. A job offer with no interview or documents? Not legit.
12. Urgent emails requesting money? Ignore them.
13. Guaranteed profits with no risk? No such thing.
14. Payment only via gift cards or crypto? Walk away.
15. A shady-looking website? Don’t trust it.
16. Asked to transfer money abroad for business? Big risk.
17. The sender won’t provide verifiable contact info? Scam.
18. The deal is too secretive? Watch out.
19. Told to keep money matters “confidential”? Be skeptical.
20. High-pressure tactics, threats, or guilt trips? Say no.
21. Fees or taxes required upfront for a prize or loan? Scam tactic.
22. No time to verify details before deciding? Not a good sign.
23. A random business opportunity out of nowhere? Likely fake.
Read also: Ponzi schemes: What you must know before its too late
24. Someone claims to be an expert but lacks proof? Don’t believe them.
25. Need to send money to receive a loan? Not legit.
26. A “miracle” cure or investment? Highly doubtful.
27. Told to avoid legal channels? It’s illegal.
28. Overly complicated deal with no clear answers? Be suspicious.
29. Asked to use an unfamiliar payment method? Think again.
30. Overly friendly but avoids discussing business clearly? Walk away.
According to SEC, any deal that sounds too good to be true probably is. It noted that scammers prey on emotions, offering fake quick fixes or huge returns. “Always verify, ask questions, and never give in to pressure. Your security matters more than any offer. Stay alert, trust your instincts, and don’t hesitate to say no. Verify registration status of the company on website:www@sec.gov.ng,” it added.
