Report Fraudulent Investment Schemes To Us, SEC Tells Nigerians

Nigerians have been urged by the Securities and Exchange Commission (SEC) to notify the commission of any suspected fraudulent investment scheme so that it can conduct a thorough investigation and take the appropriate action.

The commission said this in a notice issued on Thursday to the investing public, warning that Ponzi investment schemes posed great danger to the growth of the capital market.

The commission warned the public about the growing threats and risks posed by Ponzi schemes, illegal investment operations, and unregistered digital asset platforms.

The commission explained that fraudulent entities and individuals had continued to exploit unsuspecting investors through deceptive promises of high returns, often leveraging the allure of digital assets to create an erroneous perception of legitimacy.

The notice read, “The public is strongly advised to be wary of investment opportunities that promise guaranteed or unusually high returns with little or no risk.

“These include unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes, without subjecting themselves to the prescribed processes for obtaining the prior approval of the SEC.

“The SEC reiterates in this regard that ‘If it sounds too good to be true, it likely is.”

The commission urged potential investors to conduct thorough due diligence before investing and to verify the registration status of the company or individual offering the investment through the SEC’s website: https://sec.gov.ng/cmos.

It explained that Section 196(3) of the Investments and Securities Act, 2025, criminalises the promotion and operation of prohibited/unregistered schemes.

The SEC said it is fully committed to identifying and prosecuting offenders to the full extent of the law.

It said, “This violation is punishable upon conviction by a fine of not less than N20m or a prison term of 10 years or both,” the commission warned.

“We encourage the public to partner with the SEC to safeguard the integrity of the investment environment in Nigeria by promptly reporting suspected illegal investment schemes to the SEC,” the notice concluded.”