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List of 10 Ponzi Schemes to Avoid in Nigeria

Ponzi Schemes

Gullible Nigerians fall prey to Ponzi schemes because they want to, as they usually phrase it, “Cash out” with no risk. They are unaware of how to spot Ponzi scams and hence become unlucky victims.

The operators of these ponzi schemes even glorify their fraudulent companies by naming them investment companies so potential victims wouldn’t know. If, however, you are reading this article, count yourself among the people who will not fall for these thieves, as we have taken out time to expose them.

What are Ponzi Schemes and How Do They Work?

  • Ponzi schemes are investment frauds in which existing investors are rewarded from money paid in by new investors rather than from any genuine profit made by the business.
  • The disadvantage of these Ponzi schemes is that they are designed to enrich the pockets of the Ponzi scheme organizers rather than to provide any returns to the investors.
  • Ponzi schemes rely on a steady stream of new money to stay afloat. It thrives on new investors since their funds are used to pay off current ones.
  • If existing investors withdraw their funds and no new investors are attracted, the scheme will fail miserably or totally.
  • The disadvantage of these Ponzi schemes is that they are designed to enrich the pockets of the Ponzi scheme organizers rather than to provide any returns to the investors.
  • Ponzi schemes rely on a steady stream of new money to stay afloat. It thrives on new investors since their funds are used to pay off current ones.
  • If existing investors withdraw their funds and no new investors are attracted, the scheme will fail miserably or totally.

Ponzi Schemes: How to Spot Them

It is critical to understand how to spot these Ponzi scams in order to avoid becoming a victim.

  • Any investment strategy that promises higher returns with little or no initial commitment should be avoided at all costs.
  • Another thing to look for is an investment that produces strong positive returns on a consistent basis, regardless of market situations.
  • Ponzi schemes are unregistered investments that do not provide a 100% guarantee. It is not registered with the Securities and Exchange Commission (SEC) or other regulatory agencies, so investors have no access to information about the company’s finances, services, products, or management.
  • Ponzi schemes are run by unauthorized persons or unregistered businesses, thus your money is effectively lost.
  • Ponzi schemes tend to instill hope in unwary Nigerians eager for a quick buck, and this leads to the unintended consequences of fraudulent behavior.

Many of these Ponzi schemes exist in Nigeria, and because of the country’s poor economic state, people are more likely to fall prey to them because they are searching for quick returns with little or no risk.

Top 10 Nigerian Ponzi Schemes to Avoid

The following are the top ten Nigerian Ponzi Schemes to avoid:

1. Loom Cash

Loom is a Ponzi scheme that you should probably avoid because it is designed to attract a large number of participants using the referral and cash out model.

It is a platform that conducts business through WhatsApp chat groups. Purple, Blue, Orange, and Red are the four levels it deals with.

What is the mechanism behind it? When you join the Loom WhatsApp group, you’ll be asked to contribute between N1,000 and N13, 000, with the promise of an 8-fold return if you only invite one person to join.

This plan is more like put your money in and cash out before it crashes, but the truth is that the scheme only relies on the amount of people who come in as investors on a monthly basis, as new investor money is used to settle previous investors.

2. Loopers Club

This is yet another Ponzi scheme to be cautious of, since consumers have labeled it as “thieves” and “shady.”

3. Help Naija

This platform uses WhatsApp to guarantee investors 30% of their investment every ten days when they are paired with other investors.

It also claims a 10% fast transfer commission and a 10% referral bonus on anybody you invite or suggest to the program.

4. NNN Naija

This is another clear Ponzi scheme that should be avoided, similar to MMM Nigeria, which collapsed in 2016 and caused many people to lose both their money and their lives.

NNN Nigeria advertises itself as a community that connects millions of users around the world with those who are willing or able to assist them.

5. Get Help Worldwide

This Ponzi Scheme promises a 30 percent profit in 30 days and provides little information. This Ponzi Scheme should be avoided since it screams “scam.”

6. Paradise Payment Nigeria

It is a member-to-member giving platform, meaning that members donate directly to other members without the involvement of a third party. It starts at 1,500 naira and goes all the way up to 10,000 naira.

After completing the registration process, you will be asked to make a donation to the alleged member in need of assistance, which must be completed within 12 hours. When the member verifies receipt of your donation, you become a Pro member.

7. iCharity Club

This Ponzi Scheme follows the same pattern as the others in that it requires a charge of #6,000 to be paid within two days of registration.

It works on a scale of 1 to 10, with a payment of #6,000 following registration putting the member in Grade 1 and allows him or her to 5 times the initial deposit of 30,000 naira. You can only be compensated if you enroll three others in the system.

8. Greenspeer

This Ponzi Scheme operates by you depositing 5,000 naira into a member’s account and receiving 10,000 naira from two people, putting you in level one, then investing 100,000 naira to receive 1,000,000 naira, putting you in level five. This is a red flag scheme that you should stay away from.

9. Twinkas

This is a get-rich-quick program that guarantees members a 100% return on investment after 21 days without need referrals.

Classic, Professional, Premium, and Ultimate are the four main packages available.

The packages promise incredible profits for a small investment, indicating that this is a Ponzi scheme to avoid.

10. Nigerian Global Cash

This is identical to the other Ponzi Scheme you should avoid at all costs.

Summary

Ponzi scams have been around for a long time, but many individuals fail to spot them and become victims.

Source: CampusNG

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