Fraud Alert: Fintech accounts used to defraud 4,000 Nigerians in new Ponzi scheme

A suspected investment scheme operating under the name EMAAR has collapsed, leaving more than 4,000 Nigerians counting losses running into hundreds of millions of naira.

The platform, introduced between July and September, presented itself as a real estate investment business and received deposits through microfinance accounts. Investors were promised returns within 10 days, but the platform shut down on October 27, preventing withdrawals.

The scheme allegedly operated mainly through Telegram groups, which have now been deleted. Victims said they were encouraged to invest repeatedly and were later asked to pay an additional ₦10,000 to access their funds before the operators disappeared.

Multiple victims across Kaduna, Plateau, Rivers and Oyo states confirmed deposits ranging from thousands to millions of naira. Many said their losses include personal savings and contributions from family members.

Preliminary checks revealed that the name used by the operators could not be traced on the Corporate Affairs Commission database. The account name used for inflows has reportedly been deactivated by one of the receiving banks.

Authorities have asked affected individuals to file formal complaints. The anti-graft agency said it would investigate once petitions are submitted.

Financial analysts attributed recurring cases of digital fraud to weak verification by investors and inadequate regulatory enforcement. Consumer protection groups warned that repeated collapses of such schemes threaten trust in legitimate financial technology platforms.

Victims continue to seek ways to recover their funds, while financial institutions involved say refunds may only be possible where court orders have been obtained.

Source: Punch