SEC calls for police support to fight ponzi and crypto scams
The Securities and Exchange Commission has asked the Nigeria Police Force for help in cracking down on Ponzi scheme operators, cryptocurrency fraudsters, and other investment scammers. Emomotimi Agama, Director-General of SEC, emphasized the need for stronger collaboration to protect investors and restore trust in the financial system. He highlighted that many fraudsters operate outside the SEC’s regulatory reach, exploiting Nigerians with promises of unrealistic returns. Kayode Egbetokun, the Inspector-General of Police, pledged to support the SEC’s efforts and strengthen the enforcement unit attached to the commission.
What we know
- Emomotimi Agama stressed that Ponzi schemes and investment fraud are not just financial crimes but also social menaces that erode confidence in the financial system.
- The SEC is proposing a joint task force, capacity building for police officers, and a streamlined enforcement process to tackle scams more effectively.
- The Nigeria Police Force has provided officers to the SEC for over a decade and plans to deepen this collaboration.
- Kayode Egbetokun assured the SEC of the police’s readiness to deploy investigative and cybercrime resources to curb financial crimes.
- Nigeria continues to face a rise in investment-related fraud, with many schemes operating outside the formal capital market and causing significant losses for investors.
