PSYCHOSOCIAL AND ECONOMIC IMPLICATIONS OF CYBERCRIME-DRIVEN PONZI SCHEMES FOR VICTIMS IN IBADAN METROPOLIS, OYO STATE, NIGERIA

Abstract

Cybercrime-driven Ponzi schemes have inflicted severe psychosocial and economic devastation on many people, specifically urban residents in Nigeria. This phenomenological study explored victims’ lived experiences of two major schemes, Mavrodi Mondial Movement (MMM, 2016–2017) and Crypto Bullion Exchange (CBEX, 2023–2025), in Ibadan metropolis, Oyo State. The study anchored by two theories; lifestyle-exposure and Gullibility Theory. Eighteen victims (10 males, 8 females, and aged 25–52 years) from diverse occupations were purposively recruited via snowball sampling and interviewed in-depth in English or Yoruba between March and June 2025. Thematic analysis generated four themes:  rapid spread through WhatsApp, Telegram, cloned apps, and infiltration of churches, markets, and kinship networks; participation despite prior EFCC warnings, driven by affinity trust, economic desperation, low financial literacy, and fear of missing out; profound psychosocial trauma (anxiety, depression, shame, stigma, family crises, suicidal ideation) and catastrophic economic losses (₦80,000–₦400,000+), resulting in business collapse, loan-shark debt, school dropouts, and intergenerational poverty; and victim-recommended prevention strategies. The findings found how cognitive and social-psychological vulnerabilities override caution in economically stressed, collectivist settings. The study offers a victim-centred empirical basis for community-based financial literacy, early-warning networks, free counselling, and real-time regulatory platform collaboration to curb cyber-enabled Ponzi schemes in urban Nigeria.