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Red flags! Seven Ways To Identify A Ponzi Scheme

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Investing is one of the best ways to grow your money, but it also comes with risks, especially when scammers are involved. One of the most dangerous and common scams today is the Ponzi scheme.

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1. High Returns with Little or No Risk

2. Not Registered with Any Financial Authority

3. Little or No Information About the Business Model

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4. Payments Are Made Using Money from New Investors

5. It Relies Heavily on Referrals and Downlines

6. You Have Trouble Getting Your Money Out

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7. It Has a Strong Cult-Like Following

READ ALSO: Canada-based Nigerian Arrested Over $610,382 Romance Scam

It looks like a normal investment at first, but it’s a trap that uses people’s money to pay old investors, until everything collapses. Here are some ways to identify a Ponzi scheme before it steals your hard-earned money.

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1. High Returns with Little or No Risk

One of the biggest red flags of a Ponzi scheme is that it offers huge profits in a short time and claims there’s no risk at all. Real investments always have some level of risk. If someone tells you that you’ll get 40% returns every month with “zero risk,” that’s a lie and a likely sign of fraud.

2. Not Registered with Any Financial Authority

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Legit investment companies are registered with government bodies like the SEC in the U.S. or the Corporate Affairs Commission (CAC) in Nigeria. A Ponzi scheme avoids regulation so that it can operate under the radar. Always check if the company is officially registered before giving them your money.

3. Little or No Information About the Business Model

A common trick used by Ponzi scammers is to be vague about how the money is actually made. They may use complicated words like “crypto arbitrage” or “forex auto-trading” without explaining the process clearly. If you don’t understand how the business works after asking questions, it’s likely a Ponzi scheme.

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READ ALSO: Ponzi Operators Risk 10-Year Jail Term, ₦20m Fine In New SEC Law

4. Payments Are Made Using Money from New Investors

In a Ponzi scheme, early investors get paid with the money brought in by new investors, not from actual profits. This makes the system look like it’s working at first. But once new investors stop joining, the scheme crashes, and everyone loses their money.

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5. It Relies Heavily on Referrals and Downlines

If the company pressures you to bring in more people and promises to pay you based on the number of people you recruit, be cautious. This setup is very similar to a Ponzi scheme. Real investments don’t depend on bringing in new investors to stay afloat.

6. You Have Trouble Getting Your Money Out

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When it’s easy to put your money in but difficult to withdraw it, that’s a serious warning sign. Some Ponzi schemes delay or deny withdrawals with excuses like “system upgrades” or “high traffic,” especially when many people try to collect their money at once.

7. It Has a Strong Cult-Like Following

If everyone in the group blindly defends the investment, shuts down questions, and treats the founder like a hero, that’s another red flag. Ponzi schemes often use hype and emotion to trap people.

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A Ponzi scheme can happen anywhere, online or offline, in any country or currency. The key to protecting yourself is to stay alert, ask questions, and never be in a rush to invest.

 

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Leader Of UK Christian Group Convicted Of Sexually Abusing Women

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Chris Brain, 68, the leader of a UK Christian group once backed by the Church of England, has been convicted of sexually abusing nine women in his congregation.

A jury delivered the final verdicts on Thursday.

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‎Brain led the Nine O’Clock Service, an evangelical movement in Sheffield during the 1980s and 1990s. The group was known for its nightclub-style worship, held at 9 p.m. on Sundays, which included live music and drew large crowds of young people.

‎Prosecutors said Brain used his authority to control members of the congregation, isolating them from family and friends, and used his position to commit sexual assaults. He also maintained a group of young women known as the “lycra nuns” who assisted him, his wife, and his daughter at home, prosecutor Tim Clark told the court.

READ ALSO:UK Bans Sanex Advert For Calling Black Skin ‘Problematic’, White Skin ‘Superior’

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‎The leader of the UK Christian group was charged with 36 counts of indecent assault and one count of rape involving 13 women between 1981 and 1995. He denied the charges, claiming any sexual contact was consensual.

‎Following a trial at Inner London Crown Court, he was convicted of 17 counts of indecent assault against nine women. He was acquitted of 15 other charges, while the jury could not reach a verdict on four additional indecent assault charges and the rape allegation. The Crown Prosecution Service said it would “carefully consider” whether to seek a retrial.

‎The Nine O’Clock Service had received approval from the Church of England. In 1990, the Archbishop of Canterbury-elect George Carey met with Brain to discuss his methods, and his ordination was expedited. Prosecutors said the group even spent heavily to purchase the costume worn by Robert De Niro in the 1986 film The Mission for his ceremony.

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READ ALSO:Russia Returns Bodies Of 1,000 Ukrainian Soldiers

‎Brain resigned shortly before a BBC documentary aired in 1995, accusing him of inappropriate sexual behaviour. Carey later said he was “crushed and let down” when the allegations became public.

‎In court, Brain admitted to receiving massages from congregation members that sometimes became sexual but denied manipulating or controlling them.

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‎Bishop of Sheffield Pete Wilcox said in a statement: “What happened was an appalling abuse of power and leadership that should never have occurred. Where concerns were raised in the past and were not acted upon properly, that was a failing of the Church. For those institutional failures, I offer an unreserved apology.”

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Russia Claims More Ukraine Land As Hopes For Summit Fade

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Russia on Saturday said its forces had taken two villages in eastern Ukraine’s Donetsk region, increasing the military pressure as world leaders struggle to broker an end to the conflict.

South Africa added its voice to those calling for a summit between Ukraine and Russia.

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Russian forces are slowly advancing in the embattled eastern region of Donetsk, grinding closer to Kyiv’s key defensive line in costly metre-for-metre battles.

Moscow’s defence ministry said on Telegram that its forces had captured the villages of Sredneye and Kleban-Byk.

The taking of Kleban-Byk would mark a further advance towards Kostiantynivka — a key fortified town on the road to Kramatorsk, where a major Ukrainian logistics base is located.

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READ ALSO:Top Russian General Seriously Wounded In Ukraine – Officials

On Friday, Russia said its troops had captured three villages in the Donetsk region it claimed to have annexed in September 2022.

On Saturday, Ukrainian military officials said its forces had stopped a Russian advance and recaptured the village of Zeleny Gai in the Donetsk region in a post to Telegram.

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In July, Russia claimed the capture of the village, on the border with Dnipropetrovsk, adding that it was an important stronghold used by Ukraine to protect the area.

– Ramaphosa backs summit –
The latest Russian advances come as hopes dim for a summit between Russian and Ukrainian presidents — a solution championed by US President Donald Trump as part of his efforts to end the conflict.

READ ALSO:Russian Politicians Mock European Leaders After White House, Ukraine Talks

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South African President Cyril Ramaphosa on Saturday added his voice to calls for a Russia-Ukraine summit during a telephone conversation with Ukrainian President Volodymyr Zelensky.

President Ramaphosa stressed the urgency of holding bilateral and trilateral meetings between the leaders of Russia and Ukraine and the United States as key to signal a firm commitment to ending the war,” said a statement from his office.

Ramaphosa, who currently chairs the G20, also spoke with French President Emmanuel Macron and Finnish President Alexander Stubb, the statement added. He will speak with other European leaders in the coming weeks.

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Ramaphosa spoke on Monday with Vladimir Putin, whom he described in October at the BRICS summit as a “dear ally” and a “valued friend”.

READ ALSO:Ex-Chadian PM Masra Jailed For Hate Speech, Xenophobia

However, for the first time since Russia’s attack on Ukraine, South Africa earlier this year backed a UN resolution declaring that Russia had launched a full-scale invasion of Ukraine.

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Zelensky said he had told Ramaphosa he was ready for any kind of meeting with Putin.

However, we see that Moscow is once again trying to drag everything out even further,” he said on X.

He called on the Global South to send “relevant signals and (push) Russia toward peace”.

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On Friday, Russian Foreign Minister Sergei Lavrov said “no meeting” was planned as Trump’s mediation efforts appeared to stall, while Zelensky accused Russia of trying to prolong the offensive.

AFP

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US Suspends Work Visas For Nigerian, Foreign Truck Drivers

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The United States government has suspended the issuance of work visas for Nigerian and other foreign truck drivers, citing job security concerns and safety risks for American citizens.

Secretary of State Marco Rubio announced the decision on Thursday, saying it takes immediate effect.

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According to him, the rising number of foreign truck drivers on U.S. highways is both threatening lives and reducing opportunities for American truckers.

READ ALSO:JUST IN: US Visa Restrictions On ECOWAS Countries Threaten Regional Prosperity — FG

Effective immediately, we are pausing all issuance of worker visas for commercial truck drivers.

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“The increasing number of foreign drivers operating large tractor-trailer trucks on U.S. roads is endangering American lives and undercutting the livelihoods of American truckers,” Rubio said.

The move comes under President Donald Trump’s renewed clampdown on immigration since returning to office in January 2025.

READ ALSO:US Visa Adjudication Sparks Concerns Over Diplomatic Relations

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As part of new measures, travellers from countries with high visa overstay rates or weak travel databases will be required to pay a bond of $5,000 to $15,000 before obtaining certain categories of visas.

The U.S. Embassy in Nigeria also directed all visa applicants to disclose their social media handles from the past five years, warning that failure to comply could result in denial of applications and possible ineligibility for future visas.

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