Let’s go back in time to early 2016, at the peak of the MMM frenzy in Nigeria. The peer-to-peer scheme promised quick, easy money—30% returns on any amount you “invested.” People were hooked. 

Conversations centered around how much they’d invested and how they were about to cash out big! And for a while, it seemed too good to be true. Of course, it was.

By December of that year, MMM had frozen everyone’s accounts, and the dream of easy December money faded overnight. What followed was a tragic realization for millions: they had been scammed.

The collapse of MMM was a harsh reminder for many on the nature of scams. It wasn’t the first, and it certainly wasn’t the last. You see, scammers are like chameleons, constantly adapting their tactics and disguises. Whether it’s a Ponzi scheme, a slick phone call, or a too-good-to-be-true investment opportunity, scams are inexhaustible.

So how do you protect yourself? How do you spot the red flags before it’s too late? Here are 5 signs of a scam.

1. The “Confused Foreigner”

Imagine you’re sitting in a bus or taxi, minding your own business, when the passenger next to you, looking confused, strikes up a conversation. They claim to be from another country, carrying foreign currency they urgently need to exchange. They say they don’t trust the banks and could really use your help. And as a token of appreciation, they’ll even offer you a “cut” for your trouble.

Before long, the driver joins in, and together they spin a story so convincing, you start to believe you’ve stumbled upon an easy way to make some quick cash. All they need is for you to hand over a bit of money to “facilitate the exchange.”

The reality? That foreigner and the driver are in on it together. And the moment you hand over your cash, they’ll vanish—along with your money.

Scam Signal #1: If someone offers you a deal that involves quick cash and a complicated story about money exchange, run. Scammers often prey on the promise of easy money, knowing that greed can cloud judgment.

2. The “Simple” Investment That Gets Complicated

You’re approached by someone—a friend, maybe even a colleague—who says they’ve got an amazing opportunity for you. It starts simple: “Just invest a small amount, and you’ll get double in a few weeks.” The math seems to check out, and the returns are just too tempting to ignore.

But then things get complicated. There are new terms, additional fees, and suddenly, you’re not even sure what you’re investing in anymore. You try to pull out, but now your money is “locked in.”

This is what happened to millions of Nigerians in 2016 with MMM and 86FB in 2022. They all began with a straightforward promise: put in some money and get a high return on your investment in a matter of weeks. But as these schemes grew, so did their rules, and people started getting locked into the system with no way out.

Scam Signal #2: If an investment opportunity seems to change its rules halfway through, or you feel like you’re being strung along with new complications, beware. Scammers often use confusion as a tool to trap you.

3. The “Customer Representative” Who Needs Your Account Details

Ah, the classic scam. You’re going about your day when, suddenly, your phone rings or a text beeps in.

“Hello, this is XYZ Bank. We’ve noticed some unusual activity on your account, and we need to confirm your identity. Could you please provide your account number and BVN to verify?”

In a moment of panic, you might feel inclined to comply. After all, no one wants their bank account compromised, right? But here’s the thing: no bank will ever ask you to provide sensitive account details over the phone.

Phone scammers are incredibly skilled at sounding professional and creating a sense of urgency. Their goal is to catch you off guard and make you feel as though you must act immediately.

Scam Signal #3: If you receive an unsolicited call asking for personal or financial information, hang up and contact your bank directly. Legitimate institutions will never request such details over a phone call.

4. The “One-Time Processing Fee” Trap

You just got a job! Or maybe it’s a loan you applied for. Or better yet, you’ve been selected for an exclusive opportunity to claim a massive reward. There’s just one small catch: you need to pay a one-time processing fee to release the funds.

This scam has been around for ages, and yet it continues to work because it preys on people’s hopes and excitement. Once you pay the fee, the scammer vanishes, and you’re left with nothing.

Scam Signal #4: If you’re asked to pay money upfront to receive a prize, loan, job or reward, it’s a scam. Legitimate offers won’t charge you to claim what’s yours.

5. The Sports Betting Scam

Picture this: You’re scrolling through social media, and you come across someone boasting about how they’ve cracked the code to winning in sports betting or some online game. They’ve got “insider tips” or a “sure” system to guarantee your winnings. All you need to do is pay a small fee to join their exclusive group, and the riches will be yours.

But here’s the thing: these so-called “insiders” are just selling you a lie. Whether it’s fixed matches, betting tips, or game hacks, these scammers have no secrets. They’re simply after your money, and once you pay, you’ll realize that you’ve been duped.

Scam Signal #5: If someone claims to have a sure way to win at gambling or games and asks you to pay for it, run. The only guaranteed winner in that situation is the scammer.

Final Thoughts

There you have it, 5 signs of a scam. While this list is inexhaustive, as scams come in all shapes and sizes, the one thing they all have in common? They prey on our hopes, fears, and desires for quick success.

But here’s the good news: by staying vigilant, recognizing the warning signs, and following your gut feeling, you can protect yourself from being their next victim. Remember, if someone is offering you something that seems too good to be true, it probably is. After all, when it comes to your hard-earned money, it’s better to be cautious than sorry!

Bravewood provides Nigerian professionals with low-risk, high-return investment products, licensed by the Central Bank of Nigeria.