How Nigeria’s Top Ponzi Platforms Disappear With Your Money, SEC’s Latest Warning
- The Security and Exchange Commission (SEC) warns of rising Ponzi scheme threats exploiting digital platforms and social media
- The Common red flags include unrealistic returns, opaque models, and lack of registration
- The five platforms flagged by SEC pose significant risk to unsuspecting investors losing their money
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s Securities and Exchange Commission (SEC) has again warned the public about the growing threat of Ponzi schemes in the digital age.
These schemes have evolved from informal “street-level” operations into online platforms that use social media, crypto promises, and referral incentives to lure in unsuspecting investors.
Source: Getty Images
The basic mechanism remains the same: money from new investors is used to pay earlier ones, with no real underlying business generating profits. These operations collapse once new funds dry up, leaving many with total losses.
In the past decade, fraudsters have repeatedly shifted tactics to exploit gaps in financial literacy and weak enforcement. Historic scams like MMM illustrate how quickly seemingly thriving schemes can fall apart, trapping millions in losses.
Classic red flags of Ponzi schemes
Investors can protect themselves by recognising common signs of fraudulent platforms.
Unrealistic return promises, heavy reliance on referral bonuses, and complicated or opaque investment models are major warning signs.
Legitimate investment firms generate returns through real economic activities, not recruitment incentives.
Another key check is registration. The SEC requires all companies soliciting funds from the public to be licensed; unregistered entities should be treated with extreme caution.
Platforms presenting themselves as financial advisers, fund managers, or high-yield trading services without proper registration are operating illegally.
Five platforms flagged by SEC
In 2025 and early 2026, the SEC publicly flagged several online platforms that exhibit characteristics commonly associated with Ponzi operations. These include:
Pocket Option: Promoted as an investment adviser or fund manager, Pocket Option relied heavily on social media to attract funds.
The SEC confirmed it is not registered to offer financial services and warned that its structure bears classic Ponzi hallmarks.
Forsman & Bodenfors Ltd (F&B): Claiming to be linked to a legitimate advertising firm, this entity used recruitment incentives and job promises to entice people to deposit funds.
The SEC described its operation as fronting a scam.
Value Growth Platform: Advertised as an investment platform with market analysis and trade recommendations, this platform offered guaranteed returns and referral rewards. The SEC found it unregistered and warned investors to avoid it.
CMTrading: Using cloned media branding and celebrity images, CMTrading claimed lucrative opportunities. But its dependency on referral payouts and lack of licensing led the SEC to flag it.
Sapphire Scents Limited: This company moved from lifestyle branding into investment offerings without proper licensing. Promising high returns without real financial activity, it was also listed among fraudulent operations.
Why they hurt investors
When Ponzi schemes collapse, the money invested by participants disappears, often without any chance of recovery.
The emotional and financial toll is heavy on families and everyday savers. Newer scams increasingly use digital tools, making them hard to distinguish from legitimate apps or platforms.
How Nigerians can stay safe
The SEC reminds investors to always verify a company’s registration status through its official portal before committing funds.
Verification helps confirm that a business is legally allowed to operate in Nigeria’s capital market. Public scepticism of “too good to be true” returns remains one of the best protections against fraud.
Source: Twitter
Keeping informed, doing thorough checks, and avoiding platforms with aggressive recruitment tactics can help safeguard personal savings against scams that promise quick profits but often deliver losses.
10 mobile banking threats that could wipe out your money in 2026
Legit.ng earlier reported that Mobile banking is now the cornerstone of everyday finance in Nigeria and across the world.
As billions of users tap, swipe, and pay from their phones, cybercriminals are innovating just as fast, targeting weaknesses in devices, apps, behaviour, and networks.
With digital literacy gaps widening and threats becoming harder to spot, understanding the most dangerous risks ahead is essential.
Source: Legit.ng
