SEC Issues Warning to Nigerians As Another Investment Scam Emerges After CBEX

• SEC has sent a warning to Nigerians about TOFRO.COM, an unlicensed platform luring investors with fake promises
• The commission said the platform claims to be a cryptocurrency investment platform, but noted that it is a Ponzi scheme
• SEC has urged Nigerians to verify investment platforms before jumping into them to avoid costly scams

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Just as Nigeria is struggling to come to terms with the losses recorded in CBEX, the Securities and Exchange Commission (SEC) has identified another unregistered online investment platform TOFRO.COM operated by ToFro Exchange Global Professional Station.

In a public alert on Thursday, May 1, the SEC stated that the platform has traits indicative of a fraudulent Ponzi scheme.

A check on the website claims to be an innovative digital asset trading platform catering to professional traders worldwide, with a focus on discovering high-quality, cutting-edge investment opportunities in digital assets.

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SEC warns Nigerian

In a statement released on Thursday, the capital market regulator said TOFRO, also known as Tofro, claims to be a cryptocurrency trading site but is not licensed to operate within the Nigerian capital market or solicit funds from the public.

According to the SEC, Tofro's claims do not comply with Nigeria’s capital market regulations.

“The attention of the Securities and Exchange Commission has been drawn to the activities of an online platform known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency trading platform.

“The Commission hereby informs the public that Tofro is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.”

The SEC cautioned Nigerians against dealing with the platform, warning that those who invest with TOFRO do so at their own risk.

It urged the public to verify the registration status of investment firms through its official portal (www.sec.gov.ng/cmos).

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SEC added:

“Nigerians must understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC.

“Platforms that promise extraordinary returns and depend heavily on referrals often collapse, leaving thousands with painful losses.”

The Commission reiterated its commitment to investor protection and said it would continue monitoring the investment space and take regulatory action against illegal entities, MSN reports.

CBEX: SEC releases 30 signs to identify scam investments

In a related development, the commission of Nigeria has released a guide outlining 30 signs to help spot potential investment fraud.

The commission noted that fraudsters often lure unsuspecting victims with promises of instant wealth, high-pressure sales tactics, and requests for upfront payments via gift cards or cryptocurrency.

A message from the SEC reads:

"If an investment opportunity sounds too good to be true, it likely is. Scammers often prey on emotions by promising quick fixes or unrealistically high returns. Always verify information, ask questions, and never feel pressured into making a financial decision. Your security and financial well-being are paramount.

Source: Legit.ng