Between January 2023 and December 2024, Ponzi schemes and other financial fraud activities cost Nigerians more than N93.72 billion, according to investigation.

This means that over N1,005,170,000,000 has been lost in 25 years, Daily Sun reported.

Concerns about the need for stronger laws and increased public awareness to stop the escalating horror have been raised by scammers and fraudulent schemes that continue to take advantage of weak and gullible people.

Michael Oladele, the Director of the Bank Examination Department at the Nigeria Deposit Insurance Company (NDIC), shockingly disclosed in December 2022 the extent of financial losses Nigerians have sustained as a result of various Ponzi schemes and associated scams.

He revealed that over the last 23 years, fraud has cost the nation an astounding N911.45 billion and that the victims and the economy would undoubtedly suffer greatly as a result of this enormous sum.

Ponzi or pyramid scams are frequently dishonest business models that promise large profits with minimal risk.

Instead of focusing on selling real goods or services, its strategy is to recruit new members.

In order to "cash out," participants are typically obliged to acquire new members. Each new recruit pays an initial cost, or "investment," of which a percentage is utilized to reimburse the previous participants.

While some multi-level marketing (MLM) schemes have been accused of functioning similarly to pyramid schemes, Daily Sun reported that these schemes are distinct from MLMs, which often involve the selling of real goods or services.