With the rising threat of fraudulent investment schemes targeting unsuspecting Nigerians, the Securities and Exchange Commission (SEC) has issued a strong advisory, warning the public to remain vigilant and report any suspicious investment operations.
The Securities and Exchange Commission (SEC) has raised fresh concerns about the growing number of Ponzi schemes and other illegal investment platforms deceiving Nigerians with promises of high and risk-free returns.
In an official notice released on Thursday, the SEC cautioned investors about the dangers posed by these operations, especially as more fraudulent entities hide under the guise of digital assets to lure victims. The commission emphasized that many of these schemes, including those involving cryptocurrency, forex trading, and blockchain technologies, are not registered or approved by the SEC.
“The public is strongly advised to be cautious of investment opportunities that promise guaranteed or unusually high returns with little or no risk,” the SEC said. “This includes unregistered platforms offering cryptocurrency investments, forex trading, or blockchain-based schemes.”
The SEC urged all potential investors to verify the legitimacy of any investment opportunity by checking the registration status of the individuals or companies on the SEC’s official website. The regulatory body stressed the need for thorough due diligence before parting with hard-earned money.
According to Section 196(3) of the Investments and Securities Act 2025, the promotion and operation of unregistered or prohibited investment schemes is a criminal offense. Offenders risk a fine of not less than N20 million, a prison sentence of up to 10 years, or both.
The SEC reiterated its commitment to clamping down on illegal investment promoters and warned that it would not hesitate to prosecute anyone found guilty to the full extent of the law.
“The SEC is fully committed to identifying and prosecuting offenders,” the statement read. “We urge members of the public to partner with us by reporting any suspected illegal investment scheme.”
As fraudulent investment operations continue to evolve in sophistication, the SEC called on Nigerians to prioritize their financial safety by avoiding too-good-to-be-true offers and contributing to the protection of the capital market’s integrity.
Stay informed and protect your finances. Report any suspicious investment schemes directly to the SEC via their official website. Share this information with friends and family to help curb financial fraud in Nigeria.
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