EFCC raises red flag on Ponzi investments, crypto, forex trading in Nigeria
April 27, 2021894 views0 comments
The Economic and Financial Crime Commission (EFCC) has raised alarm over some fraudulent investment schemes that promise Nigerians returns that look too good to be true, saying such investments are Ponzi schemes and should be considered a red flag. Wilson Uwujaren, the EFCC spokesman said in Abuja that Nigerians are losing money to several Ponzi schemes, forex trading as well as bitcoin trading which are high-risk activities but with a largely unregulated terrain, prone to fraud.
According to Uwajuren, “Though risk-taking is considered by some as the oxygen that drives investment decisions, the Commission wishes to warn the public against taking an unmitigated risk in desperation to earn a windfall. Investment in Bitcoin, for instance, is a high-risk activity as the terrain is largely unregulated and prone to fraud.”
The anti-graft agency’s spokesman also revealed that the commission is alarmed at the rate Nigerians send petitions to the commission on fraudulent investments that promise a high return with little risk to investors, which he said is compounding the nation’s economic woes.
“The EFCC wishes to state that, while it will continue to investigate and prosecute persons complicit in fraudulent investment schemes, it is incumbent on the investing public to be circumspect in their investment decisions. Any investment that promises returns that look too good to be true should be considered a red flag,” Uwujaren said.
“Nigerians are by this notice, warned to be wary of fraudulent schemes and are hereby enjoined to resist the temptation of quick gain that could end in misery. Those who ignore this advisory, do so at their own risks.”
Meanwhile, Uwajuren further revealed that the ongoing trend is an indication that investment scams have continued to thrive despite the enforcement as well as the public enlightenment campaigns and interventions by the commission and other key stakeholders to combat these forms of illegal and fraudulent activities.