A message from someone claiming to be your bank. A WhatsApp contact offering an investment opportunity. A social media account promising that your money can double in a few weeks.
Scams rarely look like scams at first.
They are designed to look familiar, convincing and sometimes even urgent. In Nigeria, the Securities and Exchange Commission has warned about the growing promotion of unregistered investment schemes across social platforms, particularly schemes promising unrealistic or guaranteed returns.
The good news is that you don’t need to be a fraud expert to protect yourself.
You need to know what to look for.
Here are six things that can help.
1. Don’t let urgency make the decision for you
“Invest today.”
“Last slot.”
“You have 30 minutes.”
“Send the money now or lose the opportunity.”
Pressure is one of the oldest tricks in the book because it stops you from doing the one thing scammers don’t want: thinking.
A genuine investment opportunity should give you enough time to understand what you’re putting your money into.
If someone is rushing you to transfer money, slow down.
The FTC also identifies high-pressure tactics and demands for immediate action as common warning signs of investment scams.
2. Verify the person, not just the profile
A verified-looking Instagram account doesn’t automatically mean you’re dealing with the real person.
Scammers can impersonate:
- Banks
- Investment companies
- Government agencies
- Financial advisers
- Business owners
- Friends and family
The SEC has specifically warned Nigerians about scammers impersonating its officials and attempting to obtain personal information or unauthorised payments.
If someone contacts you unexpectedly, don’t use the phone number, link or contact details they provide.
Find the organisation’s official contact details yourself and verify the request independently.
If they say they’re from your bank, call your bank.
If they say they’re from an investment company, contact the company directly.
3. Check whether the investment is actually registered
This is one of the most important checks you can make.
Before sending money to an investment platform, adviser or scheme, find out who regulates them and whether they are actually registered.
Nigeria’s SEC currently advises investors to verify the registration status of investment platforms and entities before investing.
Don’t take screenshots of certificates, logos or claims of “SEC approved” at face value.
Verify it independently.
4. Be suspicious of guaranteed returns
There is a simple rule worth remembering:
High returns come with risk.
If someone tells you that you can make unusually high returns with little or no risk, that’s a major warning sign.
The SEC has cautioned investors against schemes promising unrealistic or guaranteed returns and notes that abnormal return promises can be a sign that an investment deserves much closer scrutiny.
Ask yourself:
Where does the return actually come from?
If the answer isn’t clear, keep your money where it is.
5. Don’t mistake social proof for proof
A scam can have:
- Thousands of followers
- Testimonials
- Screenshots of profits
- Influencers promoting it
- WhatsApp groups
- “Successful” investors
- Videos showing people receiving payouts
None of these proves that the investment is legitimate.
Scammers can manufacture testimonials and fake evidence of profits to make an opportunity appear successful.
Before investing, search for the company, its founders and the investment product independently. Look for complaints, regulatory warnings and credible information outside the platform’s own pages.
6. Never send money just because someone sounds legitimate
This is where everything comes together.
Before you transfer money, stop and ask:
Who am I sending this to?
Why am I sending it?
Can I independently verify who they are?
What happens if something goes wrong?
And most importantly:
Would I still send this money if I wasn’t being pressured?
If you can’t answer those questions confidently, don’t transfer the money yet.
One final rule
You don’t have to prove that something is a scam before deciding not to send your money.
That’s an important distinction.
If an investment doesn’t make sense, an unexpected message feels wrong or someone is pressuring you to act immediately, you can simply walk away.
Your money doesn’t need to be at risk before you become cautious.
And if you’ve already been contacted by a suspicious investment platform, don’t send additional money simply because they promise to recover what you’ve already lost. Recovery scams often target people who have previously been scammed.
When money is involved, verification should always come before trust.
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