Ponzi schemes threat to national security, economy, EFCC warns

As a show of commitment to curb the growing menace of ponzi scheme and its negative impact on the economy through sensitization programmes, the Acting Zonal Director, Enugu Zonal Directorate, of the Economic and Financial Crimes Commission (EFCC), Aisha Abubakar has charged Nigerians to shun Ponzi schemes, as they have destroyed lives, eroded trust and undermined national development.

According to a statement released on the EFCC official Facebook page, Abubakar gave the charge during the 2025 Annual Management Retreat of the Nigeria Security and Civil Defence Corps held at Jubilee Hall, Holy-ghost Cathedral, Ogbete, in Enugu State.

While speaking on the topic, Get-Rich-Quick Syndrome and the Youth Vulnerability: The Case Study of Ponzi scheme-The Role of Law Enforcement in Prevention and Disruption”, She noted that l the greedy thirst of youths to get rich quickly is a major force pushing them into this dubious schemes which has affected the economy and posed security threats.

“In Nigeria today, the aspiration for wealth has grown increasingly urgent among the youth, leading to vulnerability to financial frauds such as Ponzi schemes. They often fall victim to enticing schemes that offer double returns within short timeframes, despite the absence of legitimate business operations. The desperation to escape poverty and fund small projects pushes many into high-risk unregulated investments”, she said.

“While citing the causes of get-rich-quick syndromes among the youths, Abubakar said that greed, financial illiteracy, peer pressure, social pressure, digital and technological exposure, drugs, disappearance of cherished family and societal values, extravagant lifestyle, depression, unproductive lodging in hotels, impatience, frustration with traditional systems and psychological factors are some of the things that cause many to fall prey to schemes “even when they suspect it’s too good to be true”. The statement noted.

Speaking further, she highlighted some of the platforms that have successfully leveraged on innocent minds seeking wealth but eventually disappointed their expectations among which is the recent trading platform, CBEX.

“Notable examples in Nigeria include, MMM Nigeria, MBA Forex, Chinmark Group and CBEX. In April 2025, Nigeria witnessed one of its most devastating financial scams with the collapse of CBEX, a digital asset trading platform that operated as a Ponzi scheme. It promised investors a 100% return on investment within 30 days, leveraging on the allure of cryptocurrency trading and artificial intelligence-driven strategies”, she said.

Furthermore, Abubakar lamented that many legitimate businesses have crashed due to the expansion of this scheme, and has contributed immensely to the increase in crime rate as the funds are diverted to sponsor crime groups who are initiators of terrorism in the nation, putting a mark on the security state in the country.

“Cybercrime has created a market system where fraudsters obtain competitive advantage and drive out legitimate business. A lot of funds are lost to internet fraud, some of which are eventually used to fund organized crime groups and terrorism, potentially leading to further crime and terrorist attacks. I am sure you will agree with me that it has also undermined national defence and security in Nigeria and this has contributed to negative output in the economy”, she said.

The statement also noted that advance fee fraud, fake jobs and scholarship schemes, online loan and grant scams, fake forex and crypto currency platforms, amongst others are types of get-rich-quick syndromes she listed out.

“She said that cybercrimes, which she identified as an activity of get-rich-quick syndrome, have adverse effects on the country’s economy. She lamented that cybercrime has earned the nation a bad reputation in the global world, thereby reducing foreign investments in Nigeria, which has affected in totality, the growth of our economy.

“She said that the reputational damage affects even individuals in Nigeria, as the global world has no confidence in Nigerians, within and outside the borders of the country,” the statement reads.

Meanwhile, she discussed the roles the Commission has played in the prevention and disruption of these schemes.

“Through roadshows, social media campaigns and partnerships with youth-focused institutions, the EFCC has raised awareness of fraudulent investment schemes. We partner with the Central Bank of Nigeria, the Security and Exchange Commission, Banks and global bodies like the INTERPOL to trace funds, monitor financial flows and disrupt scam networks”, she said.