7 things you don’t know about MMM

Nigerians are known to find survival means when things seem to get a bit tough. This explains the timing coincidence shared by the growing Economic recession and a new trending “Wonder Bank” scheme called MMM

MMM is a scheme that at the moment, promises patronizing customers 30% increase on whatever amount they invest. Lots of Nigerians have been pulled towards this scheme as slogans like “MMM pays”, “MMM-Making More Money” have become the order of the day

In light of the Central Bank’s warning to Nigerians regarding the dangers associated with patronizing “Wonder banks”, here are 7 things Nigerians need to know about this scheme:

·         MMM is a Ponzi scheme, a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

·         MMM was established in 1989 by three Russians Sergei Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova. The name of the company was taken from the first letters of the three founders’ surnames.

·         Businesses who fall under this scheme often run until the business fails to achieve the returns expected, it then shuts down

·         On July 22, 1994, the police closed the offices of MMM for tax evasion

·         As a result of the business shutdown, at least 50 investors, having lost all of their money, committed suicide

·         In 2015 MMM began operating in South Africa with the same business model as MMM-2011, claiming a "30% per month" return through a "social financial network"

·         As at October 2016, a massive percentage of Nigerians are estimated to be involved in this scheme since it launched in July in the most populous black nation.