See more EFCC releases key signs investment opportunity is a Ponzi scheme

1 week ago 19
  • EFCC has released a database of reddish flags that the nationalist should beryllium alert of erstwhile making investments pursuing the illness of CBEX
  • The commission, among respective cardinal points, noted that immoderate investments with precocious instrumentality promises should beryllium investigated
  • Citizens are advised to verify each concern opportunities with regulatory bodies similar the SEC to debar falling victim

Dave Ibemere, a writer at Legit.ng, has been reporting connected business for implicit 10 years. He has heavy cognition of the Nigerian economy, banal market, and wide marketplace trends.

The Economic and Financial Crimes Commission (EFCC) has issued a caller informing to Nigerians pursuing the illness of CBEX, a suspected Ponzi strategy that near scores of investors reeling from losses.

EFCC signs to debar  a Ponzi schemeEFCC advises Nigeria connected signs to debar a Ponzi scheme Photo credit: efcc
Source: Twitter

In its play nationalist engagement series, #EFCCConnect, held connected Wednesday, April 30, the committee titled its latest occurrence "Promises to Tears: The Story of Ponzi Schemes", aiming to amended citizens connected the dangers of fraudulent concern schemes and however to place them.

In a connection released connected X, EFCC said the treatment follows a bid of distressing events arising from the autumn of accelerated fast-rising Ponzi scheme, CBEX.

The EFCC explained:

“"Ponzi schemes defined: A ponzi strategy is simply a concern oregon concern inaugural that thrives connected the recycling of funds from 1 capitalist to another, usually with unrealistic committedness of returns connected investment. "It is simply a concern exemplary that does not travel the mean template of businesses we cognize crossed the world."

Signs of an concern accidental is simply a Ponzi strategy

The EFCC outlined cardinal reddish flags that awesome a imaginable Ponzi scheme:

Promise of precocious returns and debased risk:

When a concern promises unrealistically precocious returns successful a abbreviated period, it whitethorn beryllium a motion to analyse further.

Lack of accusation connected promoters:

A concern statement that does not supply wide accusation oregon profiles of its promoters is 1 you should debar investing in.

Unknown oregon questionable illustration of the business:

What is the concern each about? Where other has it been implemented successfully? For erstwhile investors, however did it crook out?

The Commission urged the nationalist to workout caution and verify concern opportunities with regulatory bodies specified arsenic the Securities and Exchange Commission (SEC) earlier committing funds.

EFCC warns Nigerians against scamEFCC advises Nigerians against falling unfortunate to a scam Photo credit: nurphoto
Source: Getty Images

EFCC to way fraudsters

The EFCC has consistently reiterated its committedness to tracking down promoters of fraudulent concern schemes and recovering stolen funds wherever possible.

Recently, the committee declared immoderate promoters of CBEX wanted and promised to retrieve the funds stolen from Nigerians.

The Economic and Financial Crimes Commission says it has traced funds linked to the failed crypto span speech strategy to astatine slightest 4 countries.

Speaking connected Politics Today, a Channels Television programme, Ola Olukoyede, EFCC chairman, said that though efforts are underway to retrieve the stolen funds, afloat restitution to victims whitethorn beryllium impossible.

Olukoyede said respective accounts person been blocked and funds frozen, though the amounts cannot beryllium disclosed yet.

He said astir of the transactions were conducted successful cryptocurrency and routed done wallets beyond Nigeria’s jurisdiction.

SEC issues informing to Nigerians

Earlier, Legit.ng reported that the SEC has sent a informing to Nigerians astir TOFRO.COM, an unlicensed level luring investors with fake promises.

The committee said the level claims to beryllium a cryptocurrency concern platform, but noted that it is simply a Ponzi scheme.

SEC has urged Nigerians to verify concern platforms earlier jumping into them to debar costly scams.

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Source: Legit.ng

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