FINTECH

HOW TO IDENTIFY FRAUD AND PONZI SCHEME IN P2P LENDING IN NIGERIA

Published

2 years ago

HOW TO IDENTIFY FRAUD AND PONZI SCHEME IN P2P LENDING IN NIGERIA

P2P lending is a popular way to invest your money. However, the industry has been riddled with fraud schemes and scams that can be detrimental to everyone involved. Even investors can lose their money when they fall for these schemes. This article discusses how to identify fraud and Ponzi scheme in p2p lending in Nigeria.

What is a P2P Lending Company?

P2P lending is a method of borrowing and lending money through an online platform. The borrower gets a loan from the lender, and the lender receives interest on that debt.

The borrower pays the loan with interest, which is then passed on to the next person who needs a loan. When everyone repays on time and no defaults, everyone wins!

What is a Ponzi Scheme?

Ponzi schemes are fraudulent investment operations in which rewards for earlier investors are generated by the money brought in by new investors rather than by the profits earned from actual company operations or financial transactions.

The first schemes that now fit the modern definition of a Ponzi scheme appeared in the early 1920s. The scheme was named after Charles Ponzi, who became notorious for using the technique. He was even arrested and served time in prison due to his fraud.

HOW TO IDENTIFY FRAUD AND PONZI SCHEME IN P2P LENDING IN NIGERIA

A common Ponzi scheme is one where an operator pays returns to exist investors using funds contributed by new investors. A few shady players may also add extra money to their pockets with tricks like fake investments, overstated interests, etc.

For any business model to work properly, there must be enough money for everyone involved in any transaction. This means that when you invest your money into something like this (either directly or indirectly), there must always be another person ready to take over from where you left off so that everything can keep running smoothly without interruption until it gets too big, then crashes down suddenly due to lack of liquidity which happens when no more people want anything else except cash-out instead!

How can you identify a Ponzi scheme?

To identify Ponzi schemes, remember that they are usually not legitimate and will not last long. As such, you must use a critical eye when investigating potential companies.

Here are some tips on how to identify a Ponzi scheme:

Check their website
Check their registration documents
Check their license
Financial records (if they have them)
Social media presence (if they have one at all)
Customer reviews/complaints (if any exist).

Ways to identify fraud in p2p lending in Nigeria

Here are ways to identify fraud in p2p lending in Nigeria:

P2P lending is an enormous industry that can benefit both lenders and borrowers.

P2P lending is an enormous industry that can benefit both lenders and borrowers. It is a type of online peer-to-peer lending where members can borrow or lend money through an online platform. The process takes place without any bank or intermediary, hence the name “peer-to-peer.”

The advantages of p2p lending include:

It’s easy to get started with p2p loans because you usually don’t need any credit history or collateral to apply for them. You don’t even have to leave your home as all applications are made online.
Many people prefer using P2P platforms over traditional banks because they feel safer about sharing their financial information with strangers rather than with institutions that already know everything about them (banks).
There are no hidden fees charged by these sites, unlike some banks where fees could add up quickly when paying off large amounts at once (i.e., Cash Advance). This means less money spent overall!

The industry is plagued by fraud schemes and scams, which can be detrimental to everyone involved.

p2p lending is a big industry, and it’s growing fast. The scam artists are getting more sophisticated. So how do you spot the fraudsters?

The first thing to know is that fraud schemes and scams plague the p2p lending industry. According to Statista, the global peer-to-peer (P2P) market was valued at US$ 9 billion in 2016 and is projected to reach US$ 62 billion by 2025.

But while many legitimate P2P platforms are helping people find loans or make investments in other ways (eBay even has its version), plenty of bad actors are trying to steal your money through phony offers for high returns on investment (ROI).

Many Ponzi schemes use P2P as their cover because it’s relatively new in Nigeria. So many people don’t understand how it works yet, making them more vulnerable targets for these scams!

If you want to stay safe from these predators who want nothing more than your hard-earned cash, then keep reading for tips on how to identify if an opportunity might be too good—or too bad—to be true:

Even investors can lose their money when they fall for these schemes.

The most important thing to remember is that fraudsters are often very good at what they do. They will try to make their schemes look as legitimate as possible, and it can be difficult for investors to tell whether or not they are being scammed.

Generally, suppose something seems too good to be true (like high returns). In that case, you should look into it further before investing your money.

Investors can lose their money when they fall for these schemes. Investment fraud can be a real threat to investors who do not take some basic precautions when evaluating an investment opportunity.

Fraudulent P2P Lenders to Avoid

Avoid fraudulent P2P lenders not registered with the Central Bank of Nigeria.
Avoid fraudulent P2P lenders that do not have a physical address.
Avoid fraudulent P2P lenders that do not have a website with contact details and company profiles.
Avoid fraudulent P2P lenders that have high-interest rates compared to other established companies in the same industry in Nigeria.

Conclusion

If you want to avoid scams and fraud in the P2P lending industry, take the time to review each platform carefully. Look at how long it’s been operating and if there are any complaints or reports of suspicious activity. Most importantly, do not give out your personal information via email or phone! If something seems too good to be true, then it probably is — stay safe out there, folks!

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FINTECH

Fincra Granted Payment System License in Tanzania

Published

2 weeks ago

Christopher

Fincra Granted Payment System License in Tanzania

Fincra Receives Payment System Provider License from the Bank of Tanzania, Expands Regulatory Footprint in East Africa

Fincra, a leading pan-African payment infrastructure company, has received regulatory approval from the Bank of Tanzania through its 100% controlled local entity to operate as a licensed Payment System Provider, enabling it to deliver secure, scalable, and compliant payment services across Tanzania.

Fincra Granted Payment System License in Tanzania

This approval, granted under the Payment Systems Licensing and Approval Regulations, 2015, authorises Fincra to provide payment services in Tanzania. The license represents a significant milestone in Fincra’s East African expansion strategy and underscores its commitment to working closely with regulators to build trusted financial infrastructure across the continent.

“We are thrilled to receive this license from the Bank of Tanzania. It reflects our long-standing commitment to regulatory integrity and positions us to deliver even more value to businesses in East Africa,” said Wole Ayodele, CEO at Fincra. “This is a key part of our mission to build the rails for an integrated Africa”

The license allows Fincra to offer its suite of payment products and services to businesses operating in Tanzania, including local collections, business payouts, and API-based infrastructure for real-time payments, all while maintaining full compliance with the regulatory framework set by the Bank.

Fincra’s entry into Tanzania is strategically aligned with the country’s growing digital economy and its push for financial inclusion. Businesses in sectors such as fintech, logistics, travel, retail, and remittance will now be able to leverage Fincra’s infrastructure to scale faster, move money more efficiently, and expand across borders.

This development follows Fincra’s earlier regulatory approval in South Africa as a Third Party Payments Provider (TPPP) and cements the company’s position as one of the few African fintechs actively building a multi-market regulatory foundation to support a truly pan-African financial ecosystem.

About Fincra
Fincra is building the trusted financial infrastructure for businesses in Africa to move money locally and globally. Through a suite of APIs and no-code solutions, Fincra enables secure collections, payouts, and settlements across borders, with full regulatory backing in every market it operates.

Create a Fincra account in 3 minutes here.

FINTECH

Fincra Secures South African TPPP License

Published

2 weeks ago

Christopher

Fincra Secures South African TPPP License

Fincra, a leading provider of payment infrastructure for local and cross-border payments in Africa, is proud to announce receipt of another Third Party Payments Provider (TPPP) in South Africa.

Under this license, Fincra is now authorised to process the following types of payments:

Credit Card
Debit Card
EFT (Electronic Funds Transfer) Credit
Real-Time Clearing (RTC)
Rapid Payments

The license reinforces Fincra’s ability to facilitate seamless, secure, and compliant financial transactions for businesses operating within and across South Africa.

Fincra Secures South African TPPP License

This development marks a pivotal advancement in Fincra’s mission to build the rails for an integrated Africa by creating the infrastructure to simplify how African businesses pay and get paid globally.

“Securing the TPPP license in South Africa is a significant step toward realising our mission to build the rails for an integrated Africa. It reinforces our commitment to building compliant, reliable infrastructure that powers cross-border trade at scale. We’re excited about the opportunities this opens for businesses across the continent.”

— Ayowole Ayodele, CEO and Co-founder, Fincra.

Fincra’s new capabilities enable businesses across Africa and beyond to integrate directly with South Africa’s core payment systems and banks, offering faster settlement, greater reliability, and compliance with the country’s stringent financial regulations.

IFincra is now better positioned to support a broader range of merchants in industries such as e-commerce, logistics, B2B marketplaces, travel, and more.

“This license strengthens our ability to serve our merchants with faster, more secure, and locally compliant payment options in South Africa. It’s a game-changer for businesses looking to expand or operate in the region, and a strong signal of Fincra’s continued focus on enabling growth for our customers.”

— Emmanuel Babalola, CCGO, Fincra.

For Fincra, this is not just a regulatory achievement, it’s a signal of what’s next for the African payments space.

As Fincra expands across the continent, its growing regulatory footprint and partnerships with Tier-1 banks provide the foundation for scale and innovation.

About Fincra
Fincra is a leading payment infrastructure provider enabling seamless cross-border transactions across Africa.

Fincra empowers businesses, fintechs, and financial institutions to collect payments globally and make payouts locally, all through one powerful API or platform. With Fincra, launching remittance products, automating payroll, and expanding into new African markets becomes effortless. Fincra is building the financial rails that power trade, innovation, and scale across the continent.

Create a free account in 3 minutes at fincra.com

Connect with Fincra on LinkedIn , X(Twitter) Instagram, and Facebook.

BANKING

Network International appointed as Payment Processing Partner by MTN Group Fintech

Published

4 months ago

Christopher

Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International (Network) (www.Network.ae), a leading enabler of digital commerce across the Middle East and Africa (MEA), has been appointed as a Payment Processor – Issuing partner for MTN Group Fintech, Africa’s leading mobile financial services provider. This partnership marks a significant extension of Network’s portfolio of issuer processing collaborations throughout the African continent.

Network International appointed as Payment Processing Partner by MTN Group Fintech

With a footprint spanning over 50 countries and serving over 250 financial institutions, Network International brings its expertise to this partnership which will enhance MTN Fintech’s cutting-edge mobile services and provide even greater value to stakeholders and customers across Africa.

The partnership will focus on rolling out card issuance products across key MTN Fintech markets, starting with Rwanda which is already operational. Soon Uganda, Ivory Coast, and Nigeria will also be covered under this collaboration. Network International will provide a comprehensive range of services, including transaction processing, card management and online fraud prevention. MTN Fintech users will benefit from a seamless experience accessing both traditional mobile services and innovative digital payment solutions.

Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing at Network International commented: “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa. It demonstrates our ability to successfully serve Mobile Network Operators (MNOs) via our fully-fledged processing solutions and our continued dedication and commitment to the African region. We are excited to support MTN Group Fintech’s growth strategy, and its business development plans across the continent.”

Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech added, “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond. It enables our customers to actively engage in the global economy, aligning perfectly with our strategic goals alongside Mastercard to broaden access to digital financial services across the continent.” Read More (https://apo-opa.co/43aKuII)

MTN Group provides voice, data, fintech, enterprise wholesale and API services to more than 288 million customers in 14 African markets.

Distributed by APO Group on behalf of Network International.

About MTN Group Fintech:
MTN Fintech, the platform business of MTN Group, is dedicated to revolutionising global financial services through innovative digital technology solutions. Leveraging MTN’s extensive reach and expertise in telecommunications, MTN Fintech is committed to advancing financial inclusion for all and empowering communities in Africa. With a primary focus on pioneering mobile financial services, digital payments, e-commerce, short-term insurance, and remittance capabilities, MTN Fintech strives to establish seamless, accessible, and secure financial ecosystems that shape the future of digital finance.

About Network International:
Network International is the Middle East and Africa’s largest and leading digital payments company. Our purpose is to help businesses and economies grow by simplifying payments and commerce. We operate in 50+ countries serving governments, banks, fintechs, merchants and public sector companies. We have 2,000+ employees based in our markets serving over 250 financial institutions and 130,000+ merchants.