The Securities and Exchange Commission (SEC) has issued a warning to Nigerians regarding a newly uncovered suspected illegal investment platform known as TOFRO.COM (Tofro). The SEC is cautioning the public against falling victim to Tofro's fraudulent activities, which involve promises of unusually high returns on investment.

SEC Director-General, Dr. Emomotimi Agama, emphasized the importance of vigilance, advising Nigerians to be wary of firms claiming that registration with the Corporate Affairs Commission (CAC) and certification by the Special Control Unit against Money Laundering (SCUML) empower them to operate investment schemes legally. He clarified that such registrations do not legitimize investment schemes not registered with the SEC.

According to the SEC, TOFRO.COM (Tofro) presents itself as a cryptocurrency trading platform. The commission has stated that Tofro is not registered with the SEC to solicit investments or operate within the Nigerian capital market. Investigations have revealed that Tofro’s operations exhibit characteristics of a fraudulent Ponzi scheme, including the promise of unusually high returns, reliance on a referral system to sustain payouts, and failure to honor withdrawal requests from subscribers.

The SEC strongly advises Nigerians to exercise caution when considering investments with Tofro, stating that any investment made with the entity is done at the investor's own risk. Potential investors are reminded to verify the registration status of investment platforms through the SEC’s dedicated portal before engaging in transactions.

Dr. Agama stressed that Nigerians must understand the risks associated with investing in ventures not registered or regulated by the SEC. He expressed concern over individuals and foreign companies defrauding citizens through Ponzi schemes and affirmed the government's commitment to protecting citizens from such schemes.

The Investments and Securities Act imposes a N20 million fine and a 10-year imprisonment term for Ponzi scheme offenders. The SEC aims to educate the public about legitimate investment schemes and protect them from being defrauded.

Tope Onwionoko, Assistant Director of the Enforcement Department at the SEC, highlighted the commission’s dedication to financial literacy, particularly concerning Ponzi schemes. The SEC aims to reach all Nigerians with this message, emphasizing the red flags associated with fraudulent schemes, so that perpetrators will no longer find fertile ground for their operations.

Onwionoko noted that victims of Ponzi schemes often lack knowledge about how these schemes operate. He also suggested that economic hardship contributes to vulnerability but emphasized that lack of knowledge is a primary factor. The SEC’s outreach aims to equip people with the knowledge to recognize and avoid Ponzi schemes, thereby safeguarding their investments.