More Than 3million Nigerians Lost N18bn To MMM – NDIC

The Nigerian Deposit Insurance Corporation (NDIC) today disclosed that
the social media estimated that three million Nigerians had  lost N18
billion in the Phonzi scheme, popularly called Mavrodi Mundial Movement
(MMM).

The Managing Director of the Corporation, Alhaji Umaru Ibrahim disclosed
this while speaking at the NDIC day at the ongoing 38th Kaduna
International Trade Fair organized by the Kaduna Chambers of Commerce,
Mines and Agriculture. (KADCCIMA).

Represented by the deputy director Communication and public Affairs  Alh
Hadi Birchi Suleiman, the managing director lamented that despite
repeated warnings by the Central Bank of Nigeria (CBN)  and the
corporation,  Nigerians still patronise MMM.

The MD emphasised that frequent   usage  of virtual currencies,  such as
Bitcoin, Ripples, Monero, Litecoin, Dogecoin and Onecoin as currencies
for medium of exchange are Internet-based transactions and are not
authorised by the CBN due to the risks involved in their operations.

He cautioned that any person or groups of persons who invest their money in the Phonzi scheme does so at their own risk.

“The Phonzi scheme is the phenomenon of illegal fund managers, popularly
called “Wonder Banks” which have continued to defraud unsuspecting
members of the public of their hard earned money. This phenomenon has
been a source for concern because despite our repeated warnings over the
years,  some members of the public have continued to fall victims of
their fraudulent practices.

“We would like to reiterate the fact fact that these fund managers are
illegal as they are neither licences by the CBN to take deposits from
members of the public not are those who patronise them covered by the
NDIC deposit insurance scheme.

” I want to also draw the attention of some cooperative society which
often go beyond their primary mandate by accepting contributions from
members as cooperative societies are only recognised to mobilise savings
from their members”.

While advising the general public on the dangers of keeping large sums
of money at home or in market shops,  he said there are 978 licences
microfinance Banks nationwide out if which seven are spread across
Kaduna state and should be patronize for safe keeping of their monies.

He noted that with the advent of the cashless policy and the subsequent
licensing of mobile money operators (MMOs) by the CBN,  the corporation
has extended deposit insurance cover to the subscribers of MMOs to the
maximum limit of N500, 000 per subscriber per bank through it’s
Pass-Through Deposit Insurance Framework.

“Avoid mouth watering interest rate being used to lure you into becoming
a victim thereby loosing. Your hard earn monies, don’t be deceived”.