We all know that scamming is a dishonest trick used by bad guys (I wouldn't want to call them criminals) to steal money, personal information, or sensitive data from innocent people.
Scammers use clever tactics to manipulate victims into trusting them before exploiting them. And as a wise man once told me, “awareness is the first step to protection”.
So, in this post we will be looking into some methods used by scammers to scam their victims.
Phishing
The first scamming method—and the most seen in Nigeria today—is phishing.
Imagine you're fishing, and you throw out a bait that looks really tempting to a fish. The fish thinks it's real food and bites, only to get caught.
A phishing scam is exactly like that, but for people's personal information.
Here's how it works
Scammers send you fake emails, text messages, or even make phone calls that look or sound like they're from a trusted company or person you know (like your bank, a popular online store, a government agency, or even a friend).
These messages will try to trick you into doing something quickly, like:
- Saying there's a problem with your account and you need to “verify” your details.
- Claiming you've won a prize and need to click a link to claim it.
- Asking you to update your password because of a security issue.
- Sending you a fake invoice for something you didn't buy.
If you fall for the bait and click on a link, it usually takes you to a fake website that looks exactly like the real one. There, they'll ask you to enter sensitive information like your username, password, bank account details, credit card number, or even your Social Security/ID number.
Once you enter that information, the scammers “catch” it. They then use it to steal your money, access your accounts, commit identity theft, or sell your information to other criminals.
In all, phishing is a trick to “fish” for your private information by pretending to be credible.
Phishing can occur in various ways such as:
- Email phishing
- SMS phishing
- Website cloning
- Malware phishing
- Pharming
Kaspersky, a cyber security company, in 2022 reported that 7% of individuals and corporate users in Nigeria were affected by phishing attacks detected and stopped by their anti-phishing system. And that more than half of users in Nigeria reportedly faced phishing scams when using digital payments in 2022.
And I want to believe everyone has come across website phishing in different formats.
Those MTN, Glo, Airtel, 9Mobile giveaway site links on WhatsApp, Independence Day grants, Celebrity birthday giveaways and those other link offers we see in WhatsApp groups.
Just recently in 2025, the Economic and Financial Crimes Commission (EFCC) reportedly uncovered a network of over 12,000 individuals nationwide actively gathering sensitive information from unsuspecting citizens for small payments (₦1,500–₦2,000) and then reselling it to fintech companies for as much as ₦5,000 per individual. This data is then used to open fraudulent accounts for investment scams and money laundering.
Investment & Crypto Scams
In an investment scam, scammers promise huge returns on fake investments (bitcoin, forex, stocks) with the goal to take your money and vanish.
Examples
- “Invest $1,000 today and get $10,000 next week!”
- “Invest in affiliated marketing—just send money and get returns.”
Instead of helping your money grow, these schemes are designed to siphon it away into the hands of fraudsters.
Here's how they generally work
The Lure of “Too Good to Be True”
Investment scammers prey on people's desire for financial growth and often target those looking for quick profits or a way to secure their future. They make promises that sound incredibly attractive, like guaranteed high returns, minimal risk, or an “exclusive” opportunity you can't miss.
Building Trust (Fake Trust)
They might pretend to be legitimate financial advisors, brokers, or even friends/acquaintances. They often create professional-looking websites, use official-sounding names, and even provide fake documents or testimonials to make their scheme seem real.
They might contact you through messaging apps, social media, email, cold calls, or even dating apps, building a relationship before introducing the “investment opportunity”. Some go straight to the point like pros—you might fall instantly too.
Pressure and Urgency
Scammers often use high-pressure tactics to get you to act quickly: “limited-time offer”, “urgent opportunity”, or invest “now” before it's gone. This is to stop you from doing proper research or asking too many questions.
Taking Your Money
Once you're convinced, they'll instruct you to send money, often through hard-to-trace methods like mobile wallets, wire transfers, or cryptocurrency.
The Disappearing Act or “Fake Profits”
In many cases, once you send the money, the scammers disappear or block you. Sometimes, they show fake reports or a fake online portal that makes it look like your investment is growing. They might even allow small withdrawals to build your confidence and encourage you to invest more. However, when you try to withdraw a larger sum, you'll find it impossible and the scammers vanish or make excuses.
Common Types of Investment Scams (especially in Nigeria)
Ponzi Schemes
This is one of the most common. Scammers pay early investors with money collected from new investors, rather than from actual profits. The scheme collapses when there aren't enough new investors to pay the old ones, leaving most people with significant losses. (Think of the infamous MMM in Nigeria: MMM in Nigeria.)
Pyramid Schemes
Similar to Ponzi schemes, but participants usually have to recruit new members to earn profits. The focus is on recruitment rather than selling a real product or service.
Cryptocurrency Scams
With the popularity of digital currencies, scammers create fake crypto investment platforms, promise huge returns on crypto trading, or promote non-existent “Initial Coin Offerings (ICOs)”.
Fake Forex Trading
Fake forex scammers claim to be expert traders, promising guaranteed high profits from currency trading. They often use fake trading platforms to show fabricated gains.
Fake Real Estate Investments
They offer opportunities in non-existent properties, or overvalue properties, promising high returns.
“Pump and Dump” Schemes
Artificially inflating the price of a stock through false statements, then selling at the top and leaving others with worthless stock.
Advance Fee Fraud (419 Scams)
Broader than investment, but often includes an “investment” angle where you're asked to pay an upfront fee (for taxes, legal fees, etc.) to access a larger sum that never materializes.
Key Warning Signs (“Red Flags”)
- Promises of high returns with little to no risk: If it sounds too good to be true, it almost certainly is.
- Pressure to act quickly: Legitimate opportunities don’t require rushed decisions.
- Lack of clear documentation: Real investments have detailed prospectuses and clear terms.
- Unlicensed entities/individuals: Verify registration with the SEC or relevant authorities.
- Unsolicited offers: Be wary of DMs, emails, or calls out of the blue.
- Requests for unusual payment methods: Wallets, crypto, gift cards, or wire transfers are hard to trace.
Fake Online Shopping Scams
How it works
Scammers create fake websites or social media ads selling products at very low prices.
Goal
After you pay, they either send a fake product or disappear with your money.
Example
A Facebook ad shows “iPhone 15 for ₦60k!”. You pay, but never receive anything—you never see anything 🫥.
Romance Scams (Love Scams)
This is the one mostly used on Oyinbos, but a lot of Nigerians have also been scammed this way by their fellow Gee. In love scams, scammers pretend to be romantic partners on dating sites or social media.
After gaining trust, they ask for money (for emergencies, travel, or medical bills).
Example
Someone you met online says, “I love you, but I need 50k for whatever…”.
Lottery & Prize Scams
We've all “won” that iPhone 12 from Chrome and Firefox—cheers to us who didn't get scammed by it.
In lottery & prize scams, you get a call/message saying “You won a lottery!”, a new car, an exotic vacation, or another valuable prize—but must pay a fee to claim it.
Fees are disguised as:
- “Taxes”
- “Processing fees”
- “Customs duties”
- “Insurance costs”
- “Bank charges”
- “Courier charges”
They insist these fees cannot be deducted from your winnings and must be paid upfront.
Then the scammer creates a sense of urgency so you act fast. They may also ask for personal information (bank details, ID copies) to “verify your identity”, which can be used for identity theft.
Once you pay the initial fee, they'll often demand another fee, and then another—endlessly stringing you along. Eventually, after extracting as much as possible, they disappear and you never receive any prize.
Common tactics and red flags
- You didn’t enter! You can’t win a lottery you didn’t enter.
- Legitimate lotteries never ask for money to release winnings.
- Message comes out of the blue; uses “Dear Sir/Madam”.
- Poor grammar/spelling.
- Pressure to act quickly.
- Requests for sensitive personal/banking information.
- Instructions to pay via wallets, wire transfers, gift cards, or crypto.
- Fake cheque trick: deposit then “refund fees”—cheque later bounces.
Tech Support Scams
We hope this no longer works on people in 2025.
How it works
A pop-up or call claims your computer has a virus and offers “help”. Then they ask for remote access or payment to “fix” a fake problem.
Example
“Your PC is infected! Call Microsoft at this number!” They take your money and disappear—or gain access to your computer and data.
Fake Job Scams
A fake job scam is when criminals pretend to offer you a job, but their real goal is to steal your money or personal information.
How it works
They post fake job ads (online, social media, emails) that look real and often promise high pay for little work or remote positions.
They'll then ask you to pay for things like “training materials”, “background checks”, “visa processing”, or “equipment”. Once you pay, they vanish—and you never get the job or your money back. They might also steal your personal details for identity theft.
Key signs it's a scam
- They ask you to pay money to get the job. Legitimate employers pay you.
- Offer seems too good to be true (very high salary, no experience needed).
- Job is offered without a proper interview.
- Generic emails (Gmail/Yahoo) or domains that don’t match the company.
- Recruitment via Telegram or other unusual channels.
- Pressure to act fast.
Always research the company and never pay for a job offer.
Other Common Scams
Family Emergency Scams
How it works: A scammer calls pretending to be a relative in trouble (e.g., “I’m in hospital, send money!”).
Goal: Emotional manipulation to get quick cash. Don’t fall for it.
Social Media Hacking & Impersonation
How it works: Hackers take over accounts and ask friends for money.
Example: Your “friend” messages: “I’m stranded, send me ₦10k!”
Fake Government or Police Calls
How it works: Scammers pretend to be officials threatening arrest or fines unless you pay.
Example: “This is the FIRS! Pay taxes now or go to jail!”
These other cheap scams shouldn't be a problem in 2025, but you still need to know them—remember: don't fall for them, and always verify the real account name of anyone you’re sending money to.
Our ultimate tip from SmartNaijaHub to smart Nigerians is to never send money online to someone you don't know their address. Even if it is a company, it should have a physical address you can verify and visit.
The Fisi ultimate tip is that Nigerians are born smart and if an investment opportunity makes you feel uneasy or seems unrealistic, trust your gut and do thorough research before committing any money. Malo gbezome.
Our jara ultimate tip is: watch and pray 🙏🏾
Be careful—scammers prey on people's hopes of getting rich quickly. Scammers are always finding new tricks, but knowing these common scams helps you stay safe. Always think before trusting strangers online!
Always remember the “STOP, CHALLENGE, PROTECT” rule:
- STOP — Pause and think before giving money or personal information, especially if contacted unexpectedly.
- CHALLENGE — Ask yourself: Could this be fake? It’s okay to refuse, reject, or ignore requests that feel suspicious; only scammers will rush or pressure you.
- PROTECT — If you suspect a scam or have shared information, immediately contact your bank and report to authorities like the EFCC or Nigeria Police Force—and inform this hub to help others.
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