Headline
Red flags! Seven Ways To Identify A Ponzi Scheme

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.
Contents
1. High Returns with Little or No Risk
2. Not Registered with Any Financial Authority
3. Little or No Information About the Business Model
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
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.
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
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.
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.
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
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.
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.
Headline
Afghanistan-Pakistan Border Clashes Escalate After Alleged Air Strikes
Afghanistan’s Taliban forces launched armed reprisals against Pakistani soldiers along the shared border on Saturday, accusing Islamabad of carrying out air strikes on its soil, senior officials from several provinces said Saturday.
On Thursday, two explosions were heard in the Afghan capital and another in the southeast of the country. The following day, the Taliban-run defence ministry blamed the attacks on Pakistan, accusing its neighbor of violating its sovereignty.
“In retaliation for air strikes carried out by the Pakistani army on Kabul,” Taliban forces are engaged “in heavy clashes against Pakistani security forces in various areas” along the border, the Afghan military said in a statement.
Islamabad did not confirm that it was behind Thursday’s attacks, but called on Kabul “to stop harbouring the Pakistani Taliban (TTP) on its soil.”
READ ALSO:Taliban Attacks Kill 23 In Northwestern Pakistan
The TTP, trained in combat in Afghanistan and claiming to share the same ideology as the Afghan Taliban, is accused by Islamabad of having killed hundreds of its soldiers since 2021.
Taliban officials from Kunar, Nangarhar, Paktia, Khost, and Helmand provinces — all located on the border between Pakistan and Afghanistan — confirmed that clashes were ongoing.
“This evening, Taliban forces began using weapons. We fired first light and then heavy artillery at four points along the border,” a senior official in Pakistan’s Khyber-Pakhtunkhwa province, bordering Afghanistan, told AFP.
“Pakistani forces responded with heavy fire and shot down three Afghan quadcopters suspected of carrying explosives. Intense fighting continues, but so far, no casualties have been reported,” he continued.
READ ALSO:US Threatens To Sanction Countries That Vote For Shipping Carbon Tax
– Uptick in violence –
In recent months, TTP militants have intensified their campaign of violence against Pakistani security forces in the mountainous areas bordering Afghanistan.
Islamabad accuses Afghanistan of failing to expel militants who use Afghan territory to launch attacks on Pakistan, an accusation denied by authorities in Kabul.
The TTP and its affiliates are behind most of the violence — largely directed at security forces.
READ ALSO:Afghanistan’s Taliban Release US Citizen
Earlier this year, a UN report said the TTP “receive substantial logistical and operational support from the de facto authorities”, referring to the Taliban government in Kabul.
Pakistani Defence Minister Khawaja Muhammad Asif told parliament on Thursday that several efforts to convince the Afghan Taliban to stop backing the TTP had failed.
“We will not tolerate this any longer,” Asif said. “United, we must respond to those facilitating them, whether the hideouts are on our soil or Afghan soil.”
Earlier Saturday, the TTP claimed responsibility for deadly attacks in several districts in northwest Pakistan that killed 20 security officials and three civilians.
AFP
Headline
Taliban Attacks Kill 23 In Northwestern Pakistan
The Pakistani Taliban on Saturday claimed responsibility for deadly attacks in several northwestern districts that killed 20 security officials and three civilians.
The attacks, which included a suicide bombing on a police training school, were carried out on Friday in several districts of Khyber Pakhtunkhwa province that borders Afghanistan.
Militancy has surged in Khyber Pakhtunkhwa since the withdrawal of US-led troops from neighbouring Afghanistan in 2021 and the return of the Taliban government in Kabul.
READ ALSO:Taliban Court Publicly Flogs Woman For Illicit Relationship, Running Away From Home
Eleven paramilitary troops were killed in the border Khyber district, while seven policemen were killed after a suicide bomber rammed an explosives-laden car into the gate of a police training school, which was followed by a gun attack.
Five people, including three civilians, were killed in a separate clash in Bajaur district, security officials told AFP on Saturday.
The Pakistani Taliban, the Tehreek-e-Taliban (TTP), claimed responsibility for the attacks in messages on social media. The group is separate from but closely linked with the Afghan Taliban.
The attacks came hours after Afghanistan’s Taliban government accused Pakistan of “violating Kabul’s sovereign territory”, a day after two explosions were heard in the capital.
READ ALSO:Taliban Order Closure Of Beauty, Hair Salons In Afghanistan
Pakistan did not say if it was behind the blasts in Kabul, but said it had the right to defend itself against surging border militancy.
Islamabad accuses Afghanistan of failing to expel militants using Afghan territory to launch attacks on Pakistan, an accusation that authorities in Kabul deny.
The TTP and its affiliates are behind most of the violence — largely directed at security forces.
Including Friday’s attacks, at least 32 Pakistani troops and three civilians have been killed this week alone in the border regions.
AFP
Headline
US Threatens To Sanction Countries That Vote For Shipping Carbon Tax
The United States on Friday threatened to impose sanctions and take other punitive action against any country that votes in favor of a carbon tax on maritime transportation to be implemented through a UN agency.
“We will fight hard to protect our economic interests by imposing costs on countries if they support” the Net Zero Framework, said a joint statement by US Secretary of State Marco Rubio and his counterparts at the departments of energy and transportation.
Members of the London-based International Maritime Organization (IMO) are set to vote next week on the adoption of the Net Zero Framework (NZF) agreement aimed at reducing global carbon emissions from the shipping sector.
READ ALSO:Woman Wanted Over Mutilation Of Boyfriend’s Genitals In US
Washington, however, described the proposal as imposing “a global carbon tax on the world.”
Since returning to power in January, US President Donald Trump has reversed Washington’s course on climate change, denouncing it as a “scam” and encouraging fossil fuel use by deregulation.
In the statement, Rubio, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said the Trump administration “unequivocally rejects” the NZF proposal.
READ ALSO:US To Execute Man Convicted Of Rape, Murder Of Teen
They threatened a range of punishing actions against countries that vote in favor of the framework, including: visa restrictions; blocking vessels registered in those countries from US ports; imposing commercial penalties; and considering sanctions on officials.
“The United States will be moving to levy these remedies against nations that sponsor this European-led neocolonial export of global climate regulations,” the statement said.
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