As digital finance tools and social media platforms continue to gain widespread traction across Nigeria, an alarming number of fraudulent investment schemes are preying on unsuspecting citizens.
The Securities and Exchange Commission (SEC) has intensified its efforts to combat this growing threat, issuing multiple warnings and flagging illegal operators that lure Nigerians with promises of quick, unrealistic returns.
In the face of economic hardship, many ordinary Nigerians are turning to online platforms in search of financial relief or wealth creation. Unfortunately, this desperation is being exploited by increasingly sophisticated scammers who often disguise their schemes as legitimate tech-driven opportunities or professional financial services.
So far in 2025, the SEC has identified and issued warnings against seven new investment platforms, all of which exhibit the hallmarks of Ponzi or pyramid schemes. These entities operate primarily online, targeting users through social media and cloned websites of reputable brands and media houses.
READ ALSO: Nigerian stock market soars to historic highs under Tinubu
Here is a rundown of the fraudulent platforms flagged this year:
1. Pocket Option
Flagged: July 21, 2025
Promoted as an online investment advisory and fund management platform, Pocket Option promised attractive returns to investors, primarily via social media channels. The SEC noted that the scheme’s operations strongly resemble those of a Ponzi model. Investigations revealed that the platform is neither registered nor licensed to offer any form of investment service in Nigeria.
2. Forsman & Bodenfors LTD (F&B)
Flagged: July 14, 2025
Masquerading as the Nigerian subsidiary of a renowned Swedish advertising firm, F&B allegedly enticed people with the promise of instant employment opportunities—on the condition they recruit others and make upfront payments. The SEC labeled this a classic pyramid scheme and warned Nigerians to avoid the platform entirely, stating that no legitimate business ties exist with the international firm it claims to represent.
3. Value Growth Platform
Flagged: June 30, 2025
This outfit claimed to offer financial trading services and market analysis, attracting victims with “guaranteed returns” and referral-based incentives. The SEC identified its operational structure as typical of a fraudulent Ponzi scheme, marked by exaggerated promises, an aggressive referral system, and unlicensed fund management activities.
4. CMTrading
Flagged: June 20, 2025
CMTrading claimed legitimacy through supposed licenses from the Financial Sector Conduct Authority (FSCA) of South Africa and the Financial Services Authority (FSA) of Seychelles. However, the SEC revealed that it used cloned websites of well-known Nigerian media outlets—such as Punch, Vanguard, and Channels Television—and faked endorsements from public figures to trick investors. The platform’s referral-based payout model and unrealistic earnings promise triggered SEC’s fraud warning.
5. Sapphire Scents Limited
Flagged: June 19, 2025
READ ALSO: CBEX ponzi scheme reportedly resumes operations, demands $200 to recover lost funds
Better known for its past as a fragrance and lifestyle brand, Sapphire Scents has shifted into unauthorized financial services. According to the SEC, the company has been promoting an unregistered investment scheme without proper licensing or regulatory approval. “Anyone engaging with the platform does so at their own risk,” the Commission stated emphatically.
6. CBEX (Crypto Bridge Exchange) / ST Technologies International Ltd
Flagged: June 11, 2025
CBEX collapsed earlier this year, leaving investors with trapped funds. Since then, it reportedly resurfaced under new aliases—ST Technologies and Smart Treasure—demanding additional payments from users before granting withdrawals. The SEC confirmed that neither CBEX nor its rebranded entities are registered to provide investment services in Nigeria. Enforcement action is already underway, in collaboration with law enforcement agencies.
7. Punisher Coin ($PUN)
Flagged: June 5, 2025
Promoted as a “meme coin” in unauthorized presale campaigns, Punisher Coin has no verifiable utility, governance structure, or development roadmap. The SEC warned that it fits the profile of a classic “pump and dump” scam, where early promoters artificially inflate a coin’s value before dumping their holdings, leaving late investors with worthless digital assets.
In each of the above cases, the SEC has made it clear that these entities are not authorized to solicit public funds or conduct any investment-related business in Nigeria. Despite growing awareness efforts and clampdowns, the prevalence of such platforms suggests a persistent gap in financial literacy and regulatory awareness among many Nigerians.
“The presence of a company online or its popularity on social media does not equate to legitimacy,” the Commission reiterated in a public advisory.
The SEC has also continued to engage in investor education and public sensitization campaigns, encouraging Nigerians to verify the registration status of any financial platform through the Commission’s official channels before investing.