SEC Warns Nigerians Against Suspected Ponzi Scheme Tofro.com

SEC has warned Nigerians against suspected Ponzi Scheme Tofro.com.

NaijaOnPoint Nigeria reports that the Securities and Exchange Commission (SEC) has alerted Nigerians to the operations of an unregistered online investment platform identified as TOFRO.COM, also known as Tofro, describing it as a suspected illegal scheme aimed at defrauding unsuspecting investors through promises of high returns.

In a notice issued on Thursday and made available to journalists, the Commission drew public attention to the activities of the platform, which claims to be a cryptocurrency trading site.

SEC declared that Tofro is not registered to operate within the Nigerian capital market, nor is it licensed to solicit investments from the public.

The regulatory body stated that its investigations had uncovered several red flags associated with Tofro’s operations.

According to the SEC, these include promises of unusually high investment returns, a business model sustained primarily through referral incentives, and the platform’s consistent failure to honour withdrawal requests made by its subscribers.

“These features,” the Commission noted, “are typical indicators of a fraudulent Ponzi scheme.”

The Commission, therefore, cautioned members of the public to refrain from dealing with Tofro or placing funds in the hands of its promoters. It reiterated that anyone who chooses to invest with the platform does so at their own risk.

To guide the investing public, the SEC urged Nigerians to verify the legitimacy of any investment platform by checking its registration status through the Commission’s dedicated portal: www.sec.gov.ng/cmos.

The Director-General of the SEC, Dr. Emomotimi Agama, reiterated the need for vigilance among investors. He noted that with the rising popularity of digital investment platforms, Nigerians must be particularly careful not to fall prey to scams disguised as legitimate opportunities.

“Nigerians must understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Dr. Agama said. “Platforms that make promises of extraordinary returns, especially those that depend heavily on referrals, often collapse, leaving thousands of people with painful losses.”

The Commission reaffirmed its commitment to protecting investors and ensuring that only duly registered entities operate in the Nigerian capital market. It also encouraged Nigerians to report suspicious investment offers and platforms to the SEC for investigation.

This latest warning comes amid a growing wave of online financial fraud schemes targeting Nigerians, particularly young investors drawn to the allure of quick profits through cryptocurrency and similar digital ventures.

SEC restated that it would continue to monitor the activities of operators within the investment space and take appropriate regulatory action against any entities found to be engaging in unlawful activities.