TURUMA Meaning and
Definition
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Turuma is a term primarily used in Nigerian English to refer to a form of illicit financial activity known as a pyramid scheme or Ponzi scheme. It is a specific type of fraudulent investment scheme where participants are promised high returns on their investments with little or no risk involved. This term has gained significant currency in Nigeria due to the prevalence of such schemes in the country.
In a turuma scheme, individuals are generally enticed to invest their money by the promise of quick and substantial profits. Participants are often encouraged to recruit others to join the scheme, with the lure of additional rewards for each new member brought in. The funds invested by new participants are then used to pay off existing members, effectively creating a cycle of payments that can only be sustained as long as new investors keep joining.
However, the underlying structure of turuma schemes is inherently unsustainable, as there are no legitimate business activities or profits generating the promised returns. Ultimately, these schemes collapse when recruitment slows down or when the operator absconds with the accumulated funds, leading to significant financial losses for most participants.
Due to the deceptive nature and potential for financial harm, turuma schemes are generally illegal in most countries. Authorities actively work to prosecute those involved in organizing or promoting such schemes. Individuals are advised to exercise caution and skepticism when presented with investment opportunities promising unusually high returns to avoid falling victim to turuma or similar scams.
