The Economic and Financial Crimes Commission (EFCC) has issued a warning about 58 companies allegedly running illegal Ponzi schemes in Nigeria.
These companies promise high returns on investments but are actually scamming people out of their money. The EFCC is urging Nigerians to be cautious and avoid falling victim to these fraudulent schemes.
A Ponzi scheme is a type of scam that promises high profits with little or no risk. Instead of generating real profits, these schemes use money from new investors to pay older ones.
This creates the illusion of a successful business. However, once new investments stop coming in, the scheme collapses, leaving most investors with huge losses
The EFCC, in a statement on its official X (formerly Twitter) page, revealed that these companies operate without approval from the Central Bank of Nigeria (CBN) or the Securities and Exchange Commission (SEC).
This means they are illegal and unsafe for investment. The agency also assured the public that it is actively monitoring the financial space to prevent fraud.
The EFCC named several companies involved in these fraudulent activities. Some of them include:
- Wales Kingdom Capital
- Bethseida Group of Companies
- AQM Capital Limited
- Titan Multibusiness Investment Limited
- Brickwall Global Investment Limited
- Farmforte Limited & Agro Partnership Tech
- Green Eagles Agribusiness Solution Limited
- Richfield Multiconcepts Limited
- Forte Asset Management Limited
- Biss Networks Nigeria Limited
- Crowdyvest Limited
- Farm4Me Agriculture Limited
- Chinmark Homes & Shelters Limited
- Cititrust Holding PLC
- Ovaioza Farm Produce Storage Limited
- Farm 360 & Agriculture Company
- Hallmark Capital Limited
- Crowd One Investment
- 360 Agric Partners Limited
These are just some of the 58 companies listed by the EFCC. The full list includes more businesses that are allegedly scamming people through fake investment opportunities.
How to protect yourself from ponzi schemes
- Verify Investment Companies: Always check if an investment company is registered with the CBN or SEC before investing.
- Be Wary of Unrealistic Promises: If an investment promises extremely high returns with little or no risk, it is likely a scam.
- Do Your Research: Search for reviews and complaints about a company before giving them your money.
- Avoid Pressure to Invest Quickly: Scammers often create urgency to trick people into investing without thinking.
- Report Suspicious Companies: If you suspect a Ponzi scheme, report it to the EFCC or relevant authorities.
