Nigeria’s vibrant internet space, a hub of connection and opportunity, has unfortunately become a fertile ground for a recurring cast of digital deceivers. From the long-reigning “Nigerian Prince” promising unimaginable fortunes to the fleeting whispers of effortless wealth with Hamster Kombat and other “easy mining” apps, and the now-alarming implosion of CBEX with its promises of life-changing returns, these scams, though dressed in different digital attire, share a sinister DNA. They tap into universal desires – financial freedom, effortless wealth, and the fear of missing out – weaving narratives that, upon closer inspection, crumble into dust, leaving behind shattered dreams and lighter wallets. Kunle Adebajo, editor of the African Academy for Open Source Investigations (AAOSI) at Code for Africa, identifies “perception of scarcity” as a key tactic these scammers employ, making potential victims believe that an opportunity is fleeting and must be seized immediately.
This is not just a series of isolated incidents; instead, a pattern appears to be recurring. A cycle of hope, exploitation, and eventual disillusionment continues to ensnare Nigerians eager for a slice of the digital pie. Kunle highlights that scammers often create a sense of “exclusivity,” making individuals feel special and chosen for an opportunity that “only smart people” or “big business moguls” know about, further enticing them to participate.
Consider those drawn to the seemingly sophisticated “AI-powered cryptocurrency investment opportunities” on social media, picturing themselves as savvy investors reaping high, guaranteed returns. Millions joined Hamster Kombat, likely inspired by the Notcoin cash-out model. However, they had planned for it, envisioning a future when their daily taps would translate into significant wealth, perhaps funding a new business or a down payment on a house, tapped as if their lives depended on it, and the money came in small amounts, leaving all of them shattered.
The MMM Ponzi scheme, one of Nigeria’s largest investment schemes, swept the country in 2016, captivating millions with promises of 30% returns despite warnings from the CBN and SEC. At its peak, MMM became a cultural phenomenon, with thousands joining weekly and affecting banking activities. However, like all Ponzi schemes, it eventually collapsed, leaving many financial losses, serving as a reminder of the dangers of unchecked investment fervour.
According to Arise News, since the collapse of MMM in 2016, Nigerians have collectively lost an estimated ₦4.8 trillion to similar pyramid schemes. Intentionally designed to deceive, these scams entice victims with promises of extraordinary returns. Arise points out that only a pyramid scheme would offer more interest in a week than the International Monetary Fund (IMF) and World Bank could generate in an entire month—a clear sign of deception that defies economic logic.
Source: BBC News
Despite all the experiences, some Nigerians fall victim to another Ponzi scheme, CBEX. The CBEX victims likely envisioned their initial investments blossoming into substantial profits, only to face locked accounts and demands for dubious “verification fees”. Kunle points out that these “small tokens” or “verification fee” requests are often ploys to extract more money from victims.
But what are the underlying strategies that allow these digital deceivers to ensnare unsuspecting Nigerians repeatedly? Let’s pull back the curtain on the ‘games’ they play, revealing the manipulative tactics designed to exploit our deepest desires.
The Games Scammers Play: Unmasking Their Tactics
To truly understand how to protect ourselves, we must delve into the psychological strategies and deceptive tactics underpinning these scams. Here’s a closer look at the “games” they play:
- The “Get Rich Quick” Game: This is the foundational lure. Scammers dangle the irresistible promise of rapid and effortless wealth. They understand the human desire for financial freedom and exploit it by painting vivid pictures of extravagant returns for minimal investment or effort. Think of the astronomical percentages promised by Ponzi schemes like MMM or the overnight riches suggested by some “AI-powered” crypto platforms. As Kunle notes, this plays directly on the greed of potential victims. The core message is, “Why work hard when you can get rich easily?”
- The “Exclusivity and Urgency” Game (Fear of Missing Out – FOMO): Scarcity and time pressure are powerful motivators. Scammers fabricate a false sense of urgency (“Limited spots available!”, “This offer ends today!”) or present the opportunity as exclusive (“Only a select few are invited!”) to prevent potential victims from thinking critically or seeking external advice. Indeed, the fear of missing out on a lucrative opportunity can override rational judgment.
- The “Trust and Authority” Game: Building trust remains crucial for any scam to succeed. Often, scammers impersonate legitimate entities like banks, government agencies, or well-known personalities. They might craft sophisticated fake websites, employ official-looking logos, or even fabricate endorsements from celebrities or influencers. Kunle warns that scammers use “fake endorsements,” potentially through deepfakes or fabricated images, to show that trusted figures are backing the scam. Their aim? To appear credible and authoritative, thus making victims less likely to question their claims.
Furthermore, Kunle highlights the use of “fake expertise authorities,” where individuals falsely claim years of experience or affiliations with reputable institutions to gain trust. They might even clone legitimate brands and create fake social media accounts to appear credible.
- The “Emotional Manipulation” Game: Scammers are adept at playing on human emotions. They might appeal to greed by showcasing extravagant wealth, instil hope in those facing financial hardship, or even create a sense of obligation by sharing fabricated sob stories. In some cases, they might develop an understanding of panic by warning of impending losses if action isn’t taken immediately. These emotional tactics can cloud judgment and make victims more susceptible to manipulation.
- The “Confusion and Complexity” Game: Especially in scams involving newer technologies like cryptocurrency or “AI investments,” scammers often use technical jargon and complex explanations to confuse potential victims. This deliberate obfuscation makes it difficult for people to understand the underlying mechanisms, making them more likely to trust the seemingly knowledgeable scammers.
How to Differentiate Between a Real Opportunity and a Scam: Your Guide to Online Vigilance
Distinguishing between a legitimate opportunity and a scam demands a blend of scepticism, critical thinking, and careful investigation. Here’s a breakdown of key red flags:
- Unrealistic Promises: If an opportunity sounds too good to be true, it almost certainly is. Legitimate investments and income streams involve risk and gradual growth, not guaranteed overnight riches. Remain extremely wary of claims that pledge exceptionally high returns with little to no risk or effort. As Kunle stated, be extremely wary of claims that pledge exceptionally high returns with little to no risk or effort.
- Pressure to Act Quickly: Legitimate businesses and investment opportunities afford you ample time to research and make informed decisions. In contrast, scammers often generate a false sense of urgency to rush you into action before you can think critically or seek advice from trusted sources.
- Lack of Transparency: Genuine ventures typically operate transparently regarding their operations, business model, and leadership. Be suspicious of schemes that remain vague about how they generate profits or who controls them. A lack of verifiable contact information or a reluctance to answer direct questions should trigger alarm bells.
- Unregistered or Unregulated Entities: When considering investment opportunities, always verify whether the company and its representatives are registered with the appropriate regulatory bodies, such as the Securities and Exchange Commission (SEC) in Nigeria. Engaging with unregistered entities sharply increases your risk of being scammed.
- Demands for Upfront Fees or Unusual Payment Methods: Exercise high caution if you are asked to remit significant fees upfront for the promise of future earnings or to “unlock” your supposed profits. Legitimate businesses generally do not operate this way. Kunle specifically mentioned being wary of requests to pay a “small token” or review personal information to access large sums. Similarly, be wary of requests for payments through unusual or untraceable methods like gift cards, cryptocurrency for non-crypto-related services, or direct transfers to personal accounts.
- Poor Communication and Professionalism: Scam operations frequently exhibit poor communication, including grammatical and spelling errors and unprofessional website design. Legitimate organisations invest in clear, professional communication.
- Lack of Verifiable Information: Always strive to verify the information provided. Check for a physical address, phone number, and legitimate online presence. Conduct independent research and look for reviews or reports from reputable sources. This relates to our expert’s advice to scrutinise claims about track records and portfolios to see if they “actually track.”
- “Secret” or “Insider” Information: Treat with scepticism opportunities that hinge on “secret tips” or “insider knowledge” that isn’t publicly available. Legitimate investments are usually based on publicly accessible information and professional analysis.
- Difficulty Withdrawing Funds: A telltale sign of a scam is when you encounter obstacles or excuses when trying to withdraw your supposed earnings or initial investment. Scammers often delay or outright prevent withdrawals.
- Referral-Based Earnings (Pyramid Schemes): While legitimate multi-level marketing (MLM) companies exist, be wary of schemes that primarily focus on recruiting new members rather than selling actual products or services to genuine customers. These pyramid schemes are inherently unsustainable and eventually collapse.
- Overly Complex or Opaque Systems: If you cannot easily understand how an investment or earning system works, it’s a significant warning sign. Legitimate opportunities should be relatively straightforward and transparent in their operations.
- Specifically, Regarding Online Games and “Play-to-Earn” Models, be extra cautious of games promising exceptionally high returns for simple gameplay without a clear and sustainable economic model. Ask yourself: How does this game generate the wealth it’s promising to distribute? If the primary driver of new “earnings” is new players joining, it might be a Ponzi scheme disguised as a game.
Kunle also strongly advises talking to someone you trust and who is knowledgeable before investing in unfamiliar opportunities, especially those promising unusually high returns. He emphasises the importance of understanding how money and investments work and knowing what constitutes a reasonable return in any economy. If someone promises significantly more, it’s likely a high-risk venture, if not an outright scam. His final piece of advice is simple: “Just don’t be greedy.”
By understanding these “games” and diligently applying these differentiating factors, you can significantly fortify your defences against the ever-present threat of online scams in Nigeria’s digital landscape. Remember, a healthy dose of scepticism and a commitment to thorough research remain your most powerful allies.
Ultimately, the alluring dream of easy money online often culminates in the harsh reality of empty wallets and shattered trust. Recognising the recurring patterns of these scams and recalling the grand visions that ultimately crumbled can act as a potent deterrent, guiding Nigerians to navigate the digital landscape cautiously and shield themselves from the siren song of seemingly effortless wealth. The lessons from past obsessions and current dangers must pave the way for a more informed and resilient online community.
