{"id":2041,"date":"2022-12-08T06:44:09","date_gmt":"2022-12-08T06:44:09","guid":{"rendered":"https:\/\/237check.org\/?p=2041"},"modified":"2022-12-08T06:44:11","modified_gmt":"2022-12-08T06:44:11","slug":"how-social-media-has-influenced-ponzi-schemes-crumbling-the-economy-amid-the-anglophone-crisis-in-cameroon","status":"publish","type":"post","link":"https:\/\/237check.org\/fr\/2022\/12\/08\/how-social-media-has-influenced-ponzi-schemes-crumbling-the-economy-amid-the-anglophone-crisis-in-cameroon\/","title":{"rendered":"HOW SOCIAL MEDIA HAS INFLUENCED PONZI SCHEMES, CRUMBLING THE ECONOMY AMID THE ANGLOPHONE CRISIS IN CAMEROON<\/strong>"},"content":{"rendered":"\n
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  1. INTRODUCTION<\/strong><\/li>\n<\/ol>\n\n\n\n

    According to Investopedia<\/a>, Ponzi schemes are fraudulent investment scams promising high rates of return with little risk to investors mainly by remitting returns for earlier investors with money taken from later investors. They are also known as pyramid schemes. In many Ponzi schemes, the fraudsters do not invest the money but they use it to pay those who invested earlier and keep some for themselves until the entire scheme collapses and later investors lose their money.\u00a0<\/p>\n\n\n\n

    There is a correlation between the level of Ponzi schemes unraveled within the previous years and the downturn of our economy. Ponzi schemes often collapse during general economic downturns, because more people want to redeem than invest. Therefore, it is bad for monetary policy since it artificially stimulates the economy during good times and represses it in downturns.<\/p>\n\n\n\n

    The North West region of Cameroon has suffered a great loss due to the Anglophone crisis. This has caused a great downshift in the economy, since many businesses can go for days without opening due to instability pushing them to try other means of making money such as online investments of which the easiest and most accessible usually turn out to be Ponzi schemes.<\/p>\n\n\n\n

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    1. \u00a0BODY<\/strong><\/li>\n<\/ol>\n\n\n\n

      Before the Anglophone crisis, more than 70% of the population of Bamenda (The capital of the North West region of Cameroon) practiced agriculture as a main source of living. Due to the Anglophone crisis, farmers had to abandon their farms because they lived in high risk areas. The World Food Program<\/a> estimated that over 295,000 people were severely food insecure June and August 2022 in Cameroon.\u00a0<\/p>\n\n\n\n

      This precarious situation has rendered many people jobless due to abandonment of farms and closure of most businesses. Additionally, many schools have been closed down due to the insecurity with students being kidnapped and killed randomly. This has caused many youth to go back home and try alternative means of generating income to sustain their livelihoods.<\/p>\n\n\n\n

      \u00a0The ongoing crisis in the North West region of Cameroon has been characterized by people spending more time at home leading to more time spent on social media where they come across these Ponzi and Pyramid schemes. In a quest to make money and combat their financial inertia, they tend to invest their money in these online platforms which promise abundant returns. People aged 21 to 30 make up 28% of purchase scam victims while 4% are aged between 61-70 and just 2 who are over 70. It is evident that the highest people who are getting scammed are the former employed youth especially those who were employed in the collapsed financial institutions The loss of their jobs coupled with the loss their invested funds has forced the affected people to borrow money from their family and friends to survive leading to physical, mental and emotional distress.<\/p>\n\n\n\n

      The agents, distributors and customers of the scheme companies try to convince the new recruit with bogus claims about earning huge money. If the recruit does not seem interested, they introduce terms like lifetime income and royalty payment through binary activity. They target vulnerable people who are desperate to make a living later fleecing them of their hard earned money like it is stated in this video;<\/p>\n\n\n\n

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