You know that moment when your friend tells you, ‘This platform is paying! I made 100k in just two weeks!’ and your ears perk up? No shame in admitting it — we can all relate.
In a country where the economic situation is less than ideal, the temptation to double your money quickly is something almost everyone has felt.
But what if that sweet return on investment is nothing more than a carefully wrapped scam?
As Nigerians, we’ve seen them all: MMM, Loom, Racksterli, and now, everyone’s talking about CBEX. The platform claims to be a legit online trading platform, but it’s been trending for days because people can’t withdraw their funds.
They’ve promised to release payments by April 15, 2025 – and while that’s just a day away, many fear it’s déjà vu all over again.
So, let’s talk real. How do you spot a Ponzi scheme before it swallows your life savings?
First off, what is a Ponzi scheme?![A ponzi scheme is a type of investment fraud [legal pages]](https://image.api.sportal365.com/process/smp-images-production/pulse.ng/19082024/8eec290e-a1d7-4632-9429-647879e4d378?operations=fit(1042:))
A Ponzi scheme is a type of investment scam that promises high returns with little or no risk. Sounds perfect, right? But here’s the trick: instead of generating profits from legitimate business activities like trading or investments, it pays earlier investors using money from newer ones.
The whole thing relies on a continuous flow of new money. Once that slows down, boom, the house of cards collapses.
The scheme is named after Charles Ponzi, an Italian con artist who scammed thousands in the 1920s in the U.S. He promised people 50% returns in 45 days and was so convincing that people sold their properties to invest. Eventually, the truth came out: he wasn’t investing in anything real.![Charles Ponzi [Storytel]](https://image.api.sportal365.com/process//smp-images-production/pulse.ng/14042025/73e8f796-8936-4c8a-8f26-baa96669f11b.jpg?operations=fit(1042:))
Red flags you should never ignore
If someone promises you a 20-30% profit weekly or monthly, no stress, no risk, run. Even the biggest banks and hedge funds don’t promise that kind of return. If it sounds too good to be true, it probably is.
2. Little to no transparency
Can you really explain how the business works? Are they trading crypto, forex, or selling water to fish? If you don’t understand where the money is coming from, that’s a clear sign.
3. Pressure to bring others
“Refer 5 people and earn more!” Classic Ponzi behaviour. The scheme depends on new money to keep going. Once recruitment slows down, withdrawals magically start having “issues.”
4. No regulatory oversight
Is the platform registered with the SEC Nigeria, or licensed by CBN? Many Ponzi schemes operate in shadows, using vague foreign addresses, fake registration certificates, and no known office.
5. Delayed or denied withdrawals
Once a platform starts giving excuses like “system upgrade,” “payment gateway issues,” or “we’re protecting the integrity of our ecosystem,” it’s usually code for “we don run.”
Sound familiar?
CBEX and the waiting game![CBEX [TheHeraldHub]](https://image.api.sportal365.com/process//smp-images-production/pulse.ng/14042025/74879dd7-2e6e-4afb-8699-e837beea832e.jpg?operations=fit(1042:))
CBEX insists it’s legit and promises everyone will get their money by April 15. Maybe they will. Maybe they won’t. But when a platform that handles millions of naira starts locking people’s funds “for good reason,” Nigerians have every right to ask questions.
Even if CBEX turns out to be genuine, and we truly hope it is, the controversy has sparked a conversation we desperately need: how to protect ourselves in this age of online financial frauds.
Remember MMM? At its peak in 2016, over 3 million Nigerians invested. Some made quick profits and encouraged others to join. When it collapsed, it wiped out billions and shattered lives. Families broke apart. Some even took their own lives. That’s how devastating Ponzi schemes can be.
Loom followed, then Racksterli, Ultimate Cycler, and so many others, each promising fast money, each ending in disaster.)
What you can do to protect yourself
- Do your research: Google is free. Before investing, find out if the company is regulated. Look for reviews from reliable sources, not just paid influencers on Instagram.
- Don’t rush: Scammers use urgency to make you act quickly. Take your time to think.
- Ask questions: If you can’t explain how the platform makes money, maybe you shouldn’t invest.
- Diversify: Don’t put all your eggs in one basket. If one scheme fails, at least you’re not completely empty-handed.
- Talk about it: Share your experience. When people stay silent out of shame, these scammers keep winning.
As digital finance grows, so will the scams. Fraudsters are getting smarter, and their platforms look sleeker every day. Some are even using AI to look legit.
In the future, the biggest risk won’t be a guy in a hoodie in a dark room, but a website that looks just like your bank.
Fortunately, Nigerians are also getting wiser.
More people are asking questions. More people are reporting suspicious activity. And more people, like you, are reading articles like this, which is how we fight back.
There’s nothing wrong with wanting to invest and build wealth. But in your journey to financial freedom, don’t let desperation lead you into traps. If you ever feel uncertain, take a step back and breathe. Trust your instincts.
Shine your eye. That urgent double-your-money offer might just double your problems instead.
)
