Beware Of Ponzi Scheme Operators, NITDA Warns Nigerians

The National Information Technology Development Agency has said it did not give approval for the operation of any fraudulent investment scheme in the country.

The agency said this against the backdrop of  speculations that it had approved some money doubling scheme.

The Head of NITDA Corporate Affairs and External Relations Unit, Hadiza Umar, said this in a statement issued on Monday.

A Ponzi scheme is a fraudulent investment where an individual or organisation, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.

Within the last few months these illegal fund managers have adopted various strategies to collect money from would-be investors.

The statement said, “The Agency refutes any affiliation or endorsement of these platforms and strongly advises the general public on the need for caution when dealing with online money doubling schemes especially via whatsApp mobile Application.”

She said the fraudulent Financial Investment companies lure users by requesting that they join their WhatsApp group.

Umar said, “Consequently, they access records of citizens’ phone numbers. These phone numbers can further be used in SMS scams as well as other various cybercrimes.

“The general public is advised to always verify if these firms have clearance from relevant Government Agencies mandated to license Corporate Investment Advisers.

“The public is further advised to be wary of any quick wins schemes especially if it violates the Nigerian Data Protection Regulation.”

She further warned the general public to disregard the malicious investment scheme.

She advised that the schemes should be disregarded, even if the people behind such purportedly use NITDA’s name, its affiliates, logo and or staff of the agency as a bait to lure the people.