With the fall of CBEX and people loosing their money, here are five ways to spot a Ponzi/pyramid scheme.
1. Unusually high returns: If an investment promises unusually high returns with little to no risk, it may be a Ponzi scheme. Everybody is cashing out and they tell you it is “sure bet”.
You invest on Monday and cash out by the weekend or earlier, where is the money coming from? They emotionally blackmail you, so when you start questioning the process, it is your cue to run away. If not, you go pick komkom.
2. Pressure to invest quickly: Scammers often try to create a sense of urgency, pressuring you to invest quickly before missing an opportunity.
They will organise seminars with flashy titles like, “Step into your financial breakthrough today” or “Become a billionaire with just 5,000 Naira.”
Ask yourself: If they were truly making billions and needed investors, they would not be pressuring you to invest your money.
3. Lack of transparency: Ponzi schemes often involve complex investments with little to no transparency about how the money is used.
If you ask how they make money, others will silence you, saying you are being dull. All you know is that people invest money and then withdraw it. Nothing else about the business is revealed.
You look at those who want to make you a billionaire, and they are jumping keke like you and collecting give aways to keep supporting the operators.
4. Promise of consistent returns: Ponzi schemes often promise consistent returns, regardless of market conditions. If you have ever conducted any business, even on WhatsApp, you will know that prices fluctuate and you may lose money on some products. But these schemes promise steady returns and no losses—so who bears that loss?
Don’t let your greed get the best of you!
5. Unregistered investments: Ponzi schemes often involve unregistered investments, which can be a red flag. They are usually unregulated and frequently work with pastors and motivational speakers.
You have worked hard to make your money; please manage your business and grow it little by little. Don’t get greedy!
