Yemi Obafemi
The Securities and Exchange Commission has cautioned Nigerians against falling victim to fraudulent online investment platforms operating across social media.
In a public notice, the Commission warned that many of them are unregistered and show signs of Ponzi schemes.
It stated that, the schemes are increasingly being promoted through platforms such as WhatsApp, Instagram, Telegram, Facebook, TikTok, and other digital channels, where operators lure investors with promises of unusually high and guaranteed returns.
According to the regulator, several of the platforms are not licensed to operate within Nigeria’s capital market and are offering investment services illegally to unsuspecting members of the public.
The SEC explained that many of the schemes exhibit characteristics commonly linked to Ponzi arrangements and other prohibited investment operations, warning that investors risk losing their funds.
The Commission urged the public to verify the registration status of any investment platform before committing money, stressing that only licensed operators are permitted to offer capital market services in Nigeria.
