Discourse of Deception: Narratives on Ponzi Schemes from Literature and Participants

Abstract

Ponzi schemes have proliferated in Nigeria in recent decades, blending promises of quick financial gain with elaborate social recruitment strategies. This study examines the BOK Ponzi scheme, which operated in 2024 under the guise of an online reading and reward platform, using Labov’s Narrative Analysis to examine how participants construct and interpret their experiences. Data were obtained from semi-structured interviews with two individuals directly involved in the scheme—one as, an intermediary and one as an investor—supplemented by secondary literature on Ponzi operations and discourse. The analysis condenses participants’ accounts into Labov’s six narrative components—Abstract, Orientation, Complication, Evaluation, Resolution, and Coda—revealing how stories were structured to convey legitimacy, rationalise participation, and explain the eventual collapse. Findings show that economic hardship, trust in personal networks, and persuasive branding (including claims of global corporate partnerships) were central to recruitment and sustained engagement. The scheme’s integration of daily reading tasks and “K-level” reward systems blurred the line between fraudulent investment and legitimate gig work, increasing its appeal. When withdrawals were delayed due to purported “system upgrades,” participants reassured others, reinforcing a collective sense of security until a final top-up request preceded the sudden collapse in December 2024. The crash left participants with significant financial losses, emotional distress, and, in some cases, debt burdens. This research contributes to African discourse studies by illustrating how narrative structures shape the public understanding of financial fraud, and to fraud prevention by highlighting the role of social trust and digital technology in sustaining Ponzi operations. It recommends that financial literacy and anti-fraud interventions address not only economic, risk factors but also the cultural and narrative frames that normalise high-risk schemes.