By Ismail Auwal
Despite past failed Ponzi schemes which resulted in the loss of millions of Naira, more Nigerians continue to lose money to Ponzi schemes. Only recently another Ponzi scheme INSME was added to the pack.
INSME made wave on social media, and many Nigerians have taken chance before it crashed.
Ponzi is an “investment” scheme that promises quick returns usually without any identifiable product or service on offer but thrives on network marketing structures.
Ponzi operators usually entice investors by offering higher returns than other investments, in the form of short-term returns.
Rabiu Biyora, a cryptocurrency guru, in an exclusive interview with SAHELIAN TIMES said that all Ponzi schemes “are destined to failed”.
He said Nigerians will continue to have this bitter experience because they are too lazy to understand how the market works.
“Most of the founders of platforms like INSME, UWORK and the rest, are individuals with no knowledge of how the circle works, they are only out to defraud people,” he said.
He added that, “they collect new investors monies and pay old investors, and when it appears to be unsustainable, they run away”.
One of the victims, Mubarak Abdulrahman, said he was convinced by his friend to invest N62,888 but we has withdraw N5,500 out of his total investment before the business collapsed.
“I invested 62,888 out of which I was given N3,125,00 but I was only able to withdraw less than N6,000,” he said.
Another investor, Haidar Hasheem, who is a businessman in Kano, said he invested N62,888.00 and the operators paid him N18,500 out of which he only accessed N17,625.
“Also, the operators again paid me N21,500 and I could only withdraw N20,000.”
“When they later asked us to upgrade to validity for life I added N7,000.00 and the “business immediately crashed,” said Hasheem.
Salisu Hamisu another victim of INSME Ponzi scheme invested over N100, 000 in the fraudulent business.
“I bought INSME 33 accounts at the rate of N63,000 when my friend insisted that I should invest after being reluctant for some time.”
“Two of my friends showed their interest in the business, I lent each one of them half the total money they invested, because they were out of cash at the time.”
Hamisu said he was not so lucky he was only paid N17,000.00 out of his total investment.
The Director General of Security and Exchange Commission (SEC) had earlier advised Nigerians not to subscribe to any financial investment plan without first checking the registration status of the operating company on the commission’s website.
