NIGERIANS WARNED: CBEX SCAM AND REALITY TV SHOWS POSE SIGNIFICANT FINANCIAL RISKS

By Olayiwola Ibrahim // In a stark reminder of the dangers of online investment schemes, the CBEX scam has left many Nigerians financially devastated after crashing in just a few days.

This Ponzi scheme promised investors unusually high returns, but it was merely a ruse designed to part unsuspecting individuals from their hard-earned money.

Going by the definition of what a Ponzi Scheme is?

Security Monitor News Editor, Olayiwola Ibrahim says, a Ponzi scheme is a type of investment scam where returns are paid to existing investors from funds contributed by new investors, rather than from profit earned.

He mentained that these schemes are unsustainable and eventually collapse, causing significant financial losses for the majority of participants.

He harps more on CBEX Scam, noting that Cbex like other Ponzi schemes, relied on recruiting new investors to pay returns to existing ones, rather than generating revenue through legitimate investments.

When the number of new investors dwindled, the scheme inevitably collapsed.

He stated that other Examples of Ponzi Schemes such as MMM as a notorious Ponzi scheme that gained popularity in Nigeria in the 2010, promising unusually high returns on investments.

The scheme eventually collapsed, causing widespread financial lossesas well as Twin cash, loopers, Inspire Niaja, Ultimate Cycler, Stendot Capital, and Vamos Binary are other examples of Ponzi schemes that have victimized Nigerians.

Ibrahim reminds that lessons learned
from the CBEX scam and other Ponzi schemes must serve as a reminder of the importance of being cautious when investing online.

Nigerians must be vigilant and do their research before investing in any scheme, no matter how attractive the returns may seem.

In his remark, Security Monitor News Editor speaks on tips for Avoiding Ponzi Schemes below.

Be wary of unusually high returns*: If an investment scheme promises returns that seem too good to be true, it probably is.

Research thoroughly before investing, research the company and its investment scheme thoroughly.

Verify legitimacy by checking if the company is registered and regulated by relevant authorities.

Be cautious of recruitment-based schemes: If a scheme relies heavily on recruiting new investors, it may be a Ponzi scheme.

Steps the Nigerian Government Can Take
To prevent Ponzi schemes and protect citizens, the Nigerian government can take the following steps.

Strengthen regulatory frameworks by enhancing the regulatory framework to monitor and supervise online investment schemes.

Increase public awareness by launching public awareness campaigns to educate citizens about the risks of Ponzi schemes and how to avoid them.

Improve enforcement by strengthening enforcement mechanisms to detect and prosecute Ponzi schemes.

Collaborate with international authorities to share intelligence and best practices in combating Ponzi schemes.

Provide support for victims and compensation to victims of Ponzi schemes.

Additionally, Olayiwola Ibrahim raised concerns on Reality TV Shows expecially in Lagos and across the Country.

In another dimension, the Nigerian Government, particularly the censor board, should also scrutinize reality TV shows that may be exploiting contestants and viewers.

Shows like Movie Chef Cinema, ABK reality TV show, and other reality TV shows or cinema that promise winners prizes or rewards but fail to deliver may be operating as extortion rackets, preying on the hopes and dreams of contestants and their families.

The Nigerian government should consider regulating these shows to protect citizens from exploitation and ensure that they are not used as a means of extorting money from vulnerable individuals.

By taking these steps, the Nigerian government can help prevent Ponzi schemes and protect its citizens from financial losses, while also ensuring that reality TV shows operate in a fair and transparent manner.

As a media organization committed to investigative stories and security news, Security Monitor News urges Nigerians to remain cautious and vigilant when investing online or participating in reality TV shows.