Cybercrime is on the rise in Cameroon, with far reaching consequences for individuals, businesses and national security. A 2023 report by Africa Online and Publications Library indicates that Cameroon lost XAF 12.2 billion in 2021 to cybercrime, including losses from intrusion, scams, phishing and banking card skimming. It furthers that Cameroon has taken steps to address cybercrime through comprehensive legislation and its accession to the Budapest Convention on Cybercrime. Despite efforts to curb online scams, Cameroonians are still victims of online scams disguised as get-rich-quick schemes such as MIDA, Qnet, Liyeplimal and most recently Sunrun which crashed with investors’ money worth about 20 billion CFA francs.
An online scam according to Avast Academy is a deception carried out over the internet with the aim of tricking individuals into giving away personal, financial, or other sensitive information, or directly stealing their money. These scams exploit trust, technology, and lack of awareness, often using social engineering tactics to manipulate victims into providing sensitive information or making payments. It is worth noting that Online scams can take many forms, from phishing messages and fake online marketplaces to elaborate fraudulent dating profiles and too-good-to-be-true investment deals. What online scams usually have in common is their use of social engineering tactics to deceive, manipulate, and exploit victims.
Most online scams end up with victims losing significant amounts of money, psychological harm gaining aptitude, identity theft and malware installation which can be damaging.
A 2023 Federal Trade Commission (FTC) report reveals that Investment scams, including cryptocurrency investments and other “too good to be true” opportunities pose significant risks with these scams accounting to the highest reported losses at $4.6 billion. The report also highlights that fraudsters use sophisticated tactics for investment schemes, such as using stolen social media profiles and text messaging the “wrong person” to make their scam appear more legitimate and most times they target vulnerable groups hoping they will not question the perceived opportunity.
However, scammers can use any digital platform like email, text messaging, and websites to carry out their devious plots. The world is more digitally connected today than ever before and unfortunately Criminals take advantage of this online transformation to target weaknesses in online systems, networks and infrastructure. This thereby leads to a massive economic and social impact on governments, businesses and individuals worldwide. Some examples of current cyber threats include phishing, ransomware and data breaches meanwhile new types of cybercrimes are emerging all the time. Agile and organised cyber criminals are increasingly exploiting new technologies, tailoring their attacks and cooperating in new ways.
The Evolution of cyber scams
Cybercrimes have proven over time not to respect national borders with criminals, victims and technical infrastructure spanning multiple jurisdictions, bringing many challenges to investigations and prosecutions. Online scams are growing rapidly worldwide due to increased internet penetration, technological advances, and the anonymity the internet provides.
Investment frauds used to focus on people with people and develop methods to extort this money from them but with the advent of social media, they no longer focus on people with huge sums of money. Defrauders now organize Ponzi schemes to get money from people of all age groups and income status, tag them as investors and when they collect as much money as possible, they disappear. Social media aids cyber scams to get more people to buy into their ponzi schemes because of the virality the platforms provide and with the coming of artificial intelligence, it becomes easier to manipulate public opinions and get more people to believe in their schemes. The anonymity that social media provides makes it very difficult to trace those behind ponzi schemes because they have the liberty to create as many fake accounts as possible and no one will be able to trace them unlike investment frauds before the era of social media when they had to deal with physical persons who could easily be traced and found.
Ponzi-Scheme: Robbing Peter to pay Paul cited in Imphal Reviews of Arts & Politics
The Evolution of Ponzi schemes in Cameroon
Investor.gov defines a ponzi scheme as an investment fraud that pays existing investors with funds collected from new investors with the organisers often promising to invest the money and generate high returns with little or no risk. But in many ponzi schemes, the fraudsters do not invest the money, they instead use it to pay those who invested earlier and may keep some for themselves. Worth mentioning that ponzi schemes require a constant flow of new money to survive and when it becomes hard to recruit new investors, or when the numbers of existing investors cash out, these schemes tend to collapse.
According to Investopedia, a Ponzi scheme is similar to a pyramid scheme in that both use new investors’ funds to pay earlier backers and it usually relies on rewarding early participants to recruit more participants but collapses when the supply of potential participants dwindles.
The evolution of Ponzi and pyramid schemes in Cameroon illustrates a growing challenge as fraudulent investment models adapt to local contexts. With the expansion of internet access, online platforms became the new medium for fraudulent schemes enabling them to reach broader demographics, especially youth, through social media advertising and digital payment solutions.
According to a 2021 report by Genie Capital Ponzi schemes have remained a permanent feature in Cameroon for several years. Genie Capital explains that in 2018, MIDA was introduced to Cameroon and later crashed with billions of FCFA in people’s life’s savings. MIDA was packaged as an innovative system to solve Cameroon’s financial and employment issues as it promised to create millions of jobs for Cameroonians and Africans.
In 2020, Cameroonians were introduced to Sairui CHYmall, a scheme that promised massive returns through e-commerce investments. Authorities later identified it as a Ponzi scheme and it was banned alongside similar ventures like Global Investment Trading, Liyeplimal.
Sairui / Chymall Cameroon’Facebook Members group
Liyeplimal, operated by Cameroonian businessman Emile Parfait Simb, was initially framed as a cryptocurrency investment opportunity offering unusually high returns. The scheme unraveled when it failed to sustain payouts due to lack of new recruits.
Liyeplimal : Ponzi Scheme based on Cryptocurrency
The Ponzi pyramid
Many pyramid schemes disguise themselves as legitimate multi-level marketing ventures, selling minimal or fake products while emphasising recruitment fees. They attract participants with promises of unrealistically high profits, often exceeding legitimate market expectations.
We interviewed a victim of cyber scam, Gael Tsala who recounted his ordeal and how he was defrauded of his hard earned money. Tsala explained that he was contacted by a foreign number with a seductive offer to multiply his money through an online investment on Google from the comfort of his home. “The offers were juicy so I was convinced it was a good scheme to get more money” he said.
First they requested his personal information and then mobile payment details, after he was requested to make a first deposit of 60,000 FCFA which he did, then he was asked to make another payment of 2,000 FCFA and then 18,000 FCFA which was supposed to permit his transaction to go through on the platform.
When the second payment was made he was diverted to Telegram were transactions were supposed to continue, with no evidence of his money multiplying, he was still requested to make another payment of 240,000 FCFA.
When Tsala requested evidence of his payments on the platform to show he was making progress with his investment he didn’t get any response till publication time; he is yet to know where his money went or how he will get his huge profit talk-less of his capital.
Online news site Cameroon News Agency took to their social media platforms to sensitise their audience when CHYmall crashed to explain what happened as seen in the link below.
Unfortunately these schemes always operate in legal gray areas, outpacing g existing financial regulations which has promoted a crackdown, including public awareness campaigns and policy adjustments.
How SUNRUN works
The SUNRUN Ponzi scheme in Cameroon has been identified as a fraudulent operation that falsely presented itself as an investment opportunity in renewable energy. SUNRUN Cameroon claimed to be affiliated with the legitimate U.S.-based solar energy company Sunrun Inc., which categorically denied any connection to this scam.
Effectively the Sunrun company is a provider of clean energy as a subscription service offering residential solar and energy storage BUT with no upfront costs. According to their official website, their strong, multi-decade relationships with customers generate recurring revenue and enable additional value creation through product innovation and services that also enhance the electric grid. Le Bled Parle, an online news site, recounted how the scheme worked in one of its reports on November 28, 2024.
The U.S based company, SUNRUN indeed gives its users an opportunity to prepay solar subscription (lease) in full by investing in a future of solar energy but with no upfront payment, then they will be able to enjoy the rewards year after year. As it’s mentionned here https://www.sunrun.com/solar-plans-and-services/monthly-solar-lease
However, the Sunrun Ponzi scheme operated by persuading victims to “rent” solar panels with a promise of doubling or tripling their investments within a month. Initially, early participants were paid as advertised to create trust and attract more investors. However, as the pyramid grew, the platform abruptly shut down, leaving thousands of Cameroonians unable to access their funds. Over 20 billion CFA francs were reportedly extorted, primarily from young people eager for quick returns. Le Bled Parle further expatiate on the possible benefits for investors in the same report
Early investors received returns, fueling trust and word of mouth promotion making the scheme grow rapidly. When recruitment slowed down, the scheme could not sustain payouts and the operators disappeared with the funds. After two weeks of operation, the SUNRUN offices in Cameroon were shut down abruptly, and investors lost access to their funds and victims later discovered the platform was fraudulent.
Reports from online news website Cameroon News Agency indicate that a person claiming to be the manager of the scheme was arrested in Buea, however, further investigations are ongoing to trace other individuals involved.
The Operators of SUNRUN Cameroon went as far as involving celebrities in order to convince more investors, they announced on their social media handles that Cameroonian musician Blanche Bailly was going to be part of a concert they organised for investors in Douala.
The involvement of Blanche Bailly in the scheme was also carried by online site Journal du Cameroun indicating that the musician was part of the scheme considering her acceptance to perform at their event.
The Cameroonian musician could actually be seen in a video on TikTok calling on fans to show up for the concert organised in Douala by SUNRUN where she was to perform. Following the accusations, a release supposedly signed by the artists team was shared widely on social media by various platforms in which they dissociated the artists from the activities of SUNRUN as they accepted the invitation without knowing its fraudulent activities.
Recommendations
To address the problem of Ponzi and pyramid schemes in Cameroon, a multi-faceted approach is required and after carrying out a Social Media Health Report, here are some recommendations :
- Government and Regulatory Authorities
There is a need for stakeholders to strengthen financial regulation, develop and enforce stringent laws that explicitly define and prohibit Ponzi and pyramid schemes. Investment platforms should be obliged to get licensing and regular audits to ensure compliance with financial standards.
They should collaborate with international agencies to track cross-border schemes and also ensure to enhance oversight of digital platforms. With the global reach of cyber criminals there is a need for close collaboration between public and private partners like INTERPOL, whose reach will play a vital role in building cross-sector partnerships and enabling international law enforcement cooperation.
The Government should work with Telecom and payment providers like MTN and Orange to monitor and block fraudulent activity on mobile money and banking platforms. They could equally partner with local media, influencers, and community leaders to spread awareness, particularly in rural areas.
- Community Organisations and Financial Institutions
They could promote financial literacy by offering workshops and materials on personal finance management and investment basics, and collaborate with schools and universities to integrate financial education into the curricula.
- Individuals and Investors
The stakeholders are encouraged to practice due diligence, verify the legitimacy of investment platforms by Checking for licenses and reviews, and be wary of offers promising returns significantly above market rates.
- Technology and Financial Innovation
Employ Artificial intelligence and big data to identify and predict fraudulent investment patterns. Create platforms where individuals can cross-check investment opportunities with verified databases.
Conclusion
Through this Social Media Health Report, we aim to sensitise Cameroonians and everyone around the world to be careful with online scams because with the spread of the internet they are gaining grounds and employing new strategies to continue defrauding people. If it is too good to be true then it might be.
Ticha Bizel-Bi Mafor, fellow Cohort 10 #AFFCameroon
