Ponzi Schemes: Illusions of Quick Riches – International Edition (English)

An age-old adage goes: “When deceit puts on fresh attire, the credulous mistake it for reality.” In Nigeria, falsehoods about quick, undeserved riches have been adorned with countless disguises—more than any fraudster could craft—from schemes like MMM to Racksterli, Loom to Ultimate Cycler, and most recently, CBEX. These novel plans come dressed up in contemporary style, sleek digital marketing, quasi-scientific terminology, and testimonials couched in community terms. Nonetheless, the narrative stays constant: expectations soar, purses empty out, and the country ends up tending to yet another communal fiscal injury, pondering but nearly always overlooking that the previous scar still lingers.

CBEX, the newest wolf disguised as a lamb in the world of digital finance, did not target the unsuspecting but rather those who were desperate. It promised a staggering 100% return on investment within just 30 days, an offer so impossibly lavish that under ordinary conditions, everyone would have doubted it. However, these are anything but typical times. As Nigeria’s inflation drains the value from wages, foreign exchange issues eat away at family finances, and the Naira performs constant gyrations, CBEX seemed less like fraud and more like the final lifeline amid widespread financial despair. People weren’t merely handing over their savings; they were entrusting CBEX with their very hopes for making ends meet.

This pattern has existed for as long as human greed and is as regular as dawn. Each time a fresh platform arises, constructed upon the ruins of previous frauds yet adorned with improved visuals, sophisticated mobile applications, and an enticing proposition. Pioneering participants, frequently beneficiaries or coincidental winners, circulate dazzling accounts of rapid riches. Images spread across social networks. WhatsApp channels turn into arenas where people post congratulations and personal stories. When the operation peaks, it crumbles abruptly, much like a deck of cards toppling over, abandoning those who joined later in financial ruin and shock. While titles may vary, the strategy remains constant.

However, greed isn’t solely responsible for perpetuating this cycle. A more insidious cause lies at the intersection of economic distress, diminished social trust, and systemic collapse. In Nigeria, the minimum wage scarcely suffices to sustain a household for half a month. Meanwhile, legitimate investment opportunities frequently remain out of reach due to prohibitive thresholds or administrative hurdles. Amidst these conditions, Ponzi schemes do not just provide optimism—they present an appearance of equity. At last, both street vendors and corporate executives receive identical propositions: commit funds now, reap doubled returns within weeks. This mirage proves irresistible to those whose lives have been ravaged by destitution. Not even academia remains untouched. While education should theoretically shield against abuse, Nigerian graduates often possess theoretical knowledge without corresponding fiscal literacy. Academic programs lack essential lessons on personal finance, producing individuals who can articulate equations yet fail to identify fraudulent activities. Consequently, swindlers face minimal challenges as the environment is ripe with potential prey. All it takes is some gaudy online promotions coupled with endorsements from influential local figures to ensnare unsuspecting participants. By the time numerous targets recognize their predicament, substantial losses have already occurred.

CBEX and its forerunners recognized that trust serves as the currency in cons, rather than Naira. Instead of reaching out to unknown individuals, they leveraged personal connections. Acquaintances turned into recruitment agents. Religious organizations transformed into promotional centers. Individuals who wielded influence over their followers—whether unwittingly or intentionally—aided in luring the public toward fraudulent activities. Those who voiced skepticism faced collective pressure, while inquiries were often brushed off as pessimism. Ultimately, those ensnared found themselves not only economically devastated but also profoundly let down by the ones they had placed their faith in.

These programs have far-reaching effects that extend past just having a bank account. Households that had their educational expenses and hard-earned savings wiped out face severe mental health issues as a result. Bonds within families crack due to the pressure from communal setbacks. In an attempt to bounce back, some individuals, driven to extreme measures, become ensnared by further elaborate frauds, sinking deeper into financial ruin and hopelessness. Even once these online platforms vanish, the emotional wounds persist, fostering a cohort that becomes either extremely skeptical or constantly susceptible to subsequent “too good to be true” offers.

At the same time, government regulators—who are supposed to safeguard citizens—continue to lag behind. Platforms such as CBEX frequently function openly for several months, purchasing advertisements on Facebook and Instagram, organizing lavish conferences, and even entering into memorandums with dubious “partners.” Regulatory actions typically occur only after problems arise, often following significant harm. Successful convictions are uncommon, and recovered assets are exceedingly rare. This environment of unchecked behavior transforms Ponzi schemes into one of the most lucrative low-risk criminal activities in contemporary Nigeria.

A enduring resolution doesn’t merely hinge on laws or law enforcement operations; rather, it necessitates a cultural transformation rooted in financial education. This educational imperative spans from primary schools to places of worship across Nigeria, ensuring individuals learn about monetary principles, understand proper investment behaviors, and can identify fraudulent schemes. It is crucial for communities to create environments that promote inquiries regarding finance, replacing the “get-rich-fast” mindset with an appreciation for perseverance, hard work, and steady economic advancement.

Until then, the cycle will persist, featuring different individuals, various mediums, and additional targets. Within a nation where the desire for rapid riches surpasses the craving for education, Ponzi schemes will continually attract unsuspecting participants. We still have a decision to make: pursue the illusion, or chart a course toward genuine financial independence.

*David writes from Abeokuta

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