Ponzi schemes: Nigerians shun red flags for big bucks

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Many investors patronising Ponzi schemes in Nigeria seem to be ignoring the obvious “red flags” raised by the promoters, in their quest for the promised above-average returns, which ordinarily defy market trends and signal potential fraud.

Ponzi schemes are ‘investment’ schemes that promise unrealistic returns, which ordinarily should be treated with caution.

The merchants target greedy investors in their push to grow their pyramid schemes which pay returns to their investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.

“It is important to checkmate the trend to protect innocent Nigerians from losing their hard-earned savings to these rising portfolio investment platforms, whose mission is to defraud innocent people through all sorts of attractive and, many a time, unrealistic promise of high returns, even as they deceive people with some initial…

Read full article at businessday.ng