Nigerians Urged to Stay Away as Victims Report Failed Withdrawals and False Promises
In a move that has sent shockwaves through Nigeria’s digital investment community, the Securities and Exchange Commission (SEC) Nigeria has issued a blistering public warning against the online platform Tofro.com, calling it unregistered, illegal, and potentially fraudulent.
According to an official statement released on the Commission’s website, Tofro.com is not authorized to operate or solicit investments from the Nigerian public. Even more damning, the SEC revealed that the platform exhibits classic traits of a Ponzi scheme — with unsustainable promises of high returns, a dependency on referral networks, and a growing trail of complaints from users who can no longer access their funds.
“Tofro.com is NOT registered with the SEC. Its activities are illegal and pose significant financial risks to investors,” the Commission warned.
How Tofro.com Operates — A Red Flag Frenzy
Tofro.com lures unsuspecting Nigerians with flashy marketing and sky-high profit promises, convincing users to deposit money and recruit others for rewards. But behind the scenes, investigations suggest that the money from new investors is being used to pay earlier ones — a textbook Ponzi model.
Even worse, the SEC noted that multiple users have reported being unable to withdraw their funds, despite having fulfilled all the platform’s conditions. The Commission flagged this as a major sign that the platform’s payout structure is collapsing.
“Failure to honor withdrawal requests is one of the earliest signs of a Ponzi scheme on the verge of crashing,” a regulatory expert commented.
SEC’s Stern Warning to the Public
In clear terms, the SEC stated that anyone investing in Tofro.com is doing so at their own risk, as the platform is neither licensed nor regulated. The agency emphasized that all legitimate investment companies in Nigeria must be registered with the SEC — and failure to confirm this is a costly mistake.
“We urge the public to refrain from dealing with unregistered platforms. Always verify the registration status of any investment company through our website before committing your funds,” the SEC added.
Why This Matters: The Rise of Digital Ponzi Schemes in Nigeria
Tofro.com is just the latest in a string of high-tech, fast-talking online platforms that prey on financially vulnerable Nigerians with the promise of quick wealth. From fake crypto exchanges to referral-based trading apps, fraudsters are increasingly targeting young people, civil servants, and retirees with sophisticated scams dressed up as fintech.
In 2023 alone, Nigeria lost billions of naira to Ponzi schemes, and regulatory bodies have struggled to keep up with the speed at which these platforms launch, recruit, and vanish.
How to Stay Safe From Investment Scams:
- Always Verify Registration
Use the SEC Nigeria’s official site to check if a company is authorized to offer investment products: www.sec.gov.ng - Avoid “Too Good to Be True” Promises
Any platform promising consistent double-digit weekly returns or instant withdrawals through referrals should raise red flags. - Don’t Be Rushed or Pressured
Scammers thrive on urgency. Take your time to research thoroughly. - Watch Out for Withdrawal Issues
Once users start experiencing delays in getting their money, the crash is often imminent.
Tofro.com is now on the SEC’s radar. If you or someone you know is currently investing in the platform, now is the time to cut your losses and walk away. Nigeria has seen enough collapsed investment scams. Don’t let your money be the next casualty.
