With the increasing penetration of social media and digital finance tools, more Nigerians are falling prey to dubious platforms promising quick and unrealistic returns.
The Securities and Exchange Commission (SEC) has responded with repeated public warnings, investor sensitization campaigns, and regulatory enforcement actions to shield investors from such scams.
Yet, the frequency of these schemes, many disguised as legitimate businesses or tech-based opportunities, continues to rise, often targeting everyday Nigerians looking to grow their savings or escape financial hardship.
So far this year, the SEC has raised the red flag on seven more investment platforms, describing them as illegal operators running schemes that bear the hallmarks of Ponzi operations.
From CBEX, which collapsed in April, to several others still actively receiving funds from unsuspecting investors, the list has kept on growing.
Here are seven of such investment platforms so far flagged by the SEC this year:
Flagged: July 21, 2025
Promoted as an online investment adviser/fund manager, SEC noted that Pocket Option lures investors with promises of profitable investment opportunities.
According to the Commission, investigations revealed that it operates primarily through social media and online forums, displaying classic traits of a Ponzi scheme.
The SEC stated unequivocally that the platform is not registered or licensed to offer investment services in Nigeria.
Flagged: July 14, 2025
Parading as the Nigerian arm of a Swedish advertising firm, F&B, the SEC said promoters of this fraudulent Nigerian entity go about promising Nigerians automatic employment in the company as compensation for recruiting more members who are lured to pay various sums of money for various positions in the company.
The Commission, in a public notice to investors, said its preliminary investigations found that the platform was a front for a pyramid-style scam and warned the public to stay away from it entirely.
Flagged: June 30, 2025
Operating under the guise of offering market analysis and trading services, Value Growth Platform attracted investors with “guaranteed returns” and monetary incentives for referrals.
The SEC described its operations as exhibiting typical Ponzi scheme features and confirmed the platform is unlicensed.
The SEC described its operations as exhibiting typical Ponzi scheme features and confirmed the platform is unlicensed.
“Investigations have revealed that VALUE GROWTH PLATFORM’s operations exhibit typical indicators of a fraudulent Ponzi scheme, which includes promises of guaranteed returns, heavy reliance on a referral system with promises of monetary rewards for referrals, and desperate requests for subscribers to fund accounts,” SEC stated.
Flagged: June 20, 2025
According to SEC, the platform claims to be licenced as GCMT SOUTH AFRICA PTY LTD by the Financial Sector Conduct Authority (FSCA) of South Africa and as a securities dealer by the Financial Services Authority (FSA) of Seychelles.
The platform uses cloned websites of reputable media houses such as the Punch Newspaper, Vanguard Newspaper, BBC, Channels Television and Arise Television to attract unsuspecting victims. It also posts cloned videos and pictures of prominent Nigerians on social media, promising monetary benefits to subscribers.
The SEC revealed that CMTrading’s operations heavily rely on high-return promises and a referral-based payout model—key red flags of Ponzi fraud.
Flagged: June 19, 2025
The SEC stated that Sapphire Scents Limited, which holds itself out as an Investment Adviser/Fund Manager promoting an unregistered investment scheme, is not registered to operate in any capacity in the Nigerian Capital Market.
“Accordingly, the public is advised to refrain from engaging with Sapphire Scents Limited or its representatives in respect of any business in the Nigerian Capital Market, as any person who does so is at his/her own risk,” it warned.
Flagged: June 11, 2025
After its collapse in April, with many Nigerian investors’ funds trapped, CBEX resurfaced under the name ST Technologies or Smart Treasure. The platform reportedly demanded payment from users before processing withdrawals.
According to reports, CBEX promoters were demanding $200 from their subscribers with balances above $1,000, and $100 from those with less than $1000 balances before withdrawals could be processed.
“The Commission hereby restate unequivocally that neither CBEX nor ST Technologies International Ltd (or Smart Treasure/Super Technology) is registered with the Commission or authorized to offer investment related services to the Nigerian public,” the SEC stated
It added that enforcement action has already been initiated against CBEX and its promoters following its previous unauthorized investment activities, and the Commission was collaborating with relevant Law Enforcement Agencies to properly investigate the company, adding that it would take appropriate actions in line with the provisions of the Investments and Securities Act 2025.
Flagged: June 5, 2025
Promoted as a meme coin in unauthorized presale campaigns, SEC said Punisher Coin lacks any legitimate use case or project backing.
The SEC warned that such coins are prone to “pump and dump” scams, where promoters hype a coin to inflate prices before offloading their holdings, leaving unsuspecting investors with worthless tokens.
“Accordingly, the public is advised to refrain from engaging in the purported presale of PUNISHER COIN ($PUN) as any person who invests in the scheme does so at his/her own risk,” the Commission warned.
In all seven cases, the SEC has reiterated that these platforms are not authorized to solicit funds or offer investment services in Nigeria. Investors engaging with them do so at their own risk. The Commission also reminded the public that the presence of a company online or on social media does not imply legitimacy.