Afrigather 
In recent times, the Nigerian digital house has witnessed a major surge in scams that has led to the lack of billions of Naira to fraudsters. These scams vary from ponzi schemes to funding fraud, to fake crypto commerce, and plenty of extra. In accordance with a latest report by The Guardian, Nigerians have lost almost a trillion naira to Ponzi schemes in the last 23 years. Among the extra infamous fraud schemes in latest Nigerian historical past embrace MMM, EatRich, TonsoElite, 360Hub, Cryptosilv, Racsterli, Chinmak, and so forth. These elaborate schemes have robbed tens of millions of Nigerians of their hard-earned cash.
The success of a few of these scams may be attributed partially to influencers and celebrities lending them legitimacy firstly of their operations. It’s nearly frequent observe now for companies to contract influencers to endorse their services and products and appeal to clients. However what occurs when issues flip bitter and the enterprise is revealed to be lower than reputable? In lots of circumstances, the influencers/celebrities, whose recognition lent credence to those companies, merely disassociate their model from the scams and transfer on, leaving their followers to their destiny.
This begs the query: how culpable are influencers and celebrities for losses incurred by their followers to manufacturers they endorse?
The case of Zzapo Cell illustrates this case. In 2019, an unknown model, Zzapo Cell swept into the smartphone business, disrupting the house with ridiculously low costs and endorsements from chosen influencers and celebrities. Regardless of a promising begin, Zzapo Cell would go on to swindle 1000’s of Nigerians of tens of millions of naira in a case that by no means fairly acquired consideration.
Zzapo’s launch appeared well-timed to coincide with the rise in prices of Android telephones with subtle options. As a consequence, folks had been looking out for extra reasonably priced alternate options. Enter Zzapo, with an reasonably priced and feature-rich smartphone.
The specs of the Zzapo cell regarded unimaginable and, for that yr, appeared well worth the go, regardless of it not being a well-known model like Tecno, Itel or Infinix. It promised 4GB RAM, 64 GB ROM, and plenty of extra wonderful options. One of the best half was the unbelievable entry worth of the telephone: ₦7,999 naira (about $16).
Tagged as an introductory provide, the ₦7,999 worth was solely obtainable for preorders, and consumers must wait 21 days to obtain their orders after fee.
The introductory provide worth was slated to final until December 6, 2019, after which it will return to a “promo worth” of ₦45,000 until December 31, 2019, after which return to its “authentic worth” of ₦108,000 in January. Maybe this erratic pricing mannequin was the primary signal that every one was not because it appeared at Zzapo Cell.
Zzapo Cell additionally enlisted common skit maker, Broda Shaggi, and tech fanatic and present CEO of Azapay, Jackye Madu to endorse the telephone. The previous made a skit to validate the authenticity of the phone, whereas the latter was bodily current at an unveiling event.
Journalists jostling to interview Jackye Madu
Zzapo cell crew alongside Jakye Madu on the launch
The corporate additionally enlisted Otumbadi Chikodi, a digital marketer generally known as @hrmqueenluciana on Instagram, to evaluation the smartphone on her web page.
As a result of a spike in orders, presumably on account of the influencer endorsements, Zzapo prolonged the preorder date to December 11, claiming it was to permit those that had skilled issue in putting their orders earlier than the preliminary deadline additionally benefit from the preorder worth. Nevertheless, Zzapo Cell didn’t finish the sale till December 13.
Introductory provide worth halt on the thirteenth of December, 2019
After the tip of sale announcement, the Zzapo social media pages went quiet. After 5 days, they returned to announce an abrupt finish to the gross sales worth of ₦45,000, initially slated to final until the next yr.
Issues solely went downhill from there. As the times handed, complaints of no monitoring numbers or order confirmations flooded Zzapo’s social media pages. The one proof of buy consumers had was the automated e-mail from Paystack, Zzapo’s fee gateway.
Visits to Zzapo’s bodily outlet revealed a small, comparatively empty house with no devices or telephones on sale.
On December 23, the proposed supply date for the pre-ordered Zzapo telephones, the model introduced that they had been nonetheless processing orders, and requested for endurance, advising those that couldn’t wait to request refunds.
That was the final Nigerians would see and listen to of Zzapo Cell.
For a lot of who patronised Zzapo Cell, refunds had been troublesome, and in some circumstances, unattainable to get. Those that concerned legislation enforcement recovered a part of their cash, whereas reportedly forfeiting the remainder to the police.
A sufferer who was fortunate sufficient to get a part of their
a reimbursement by way of the assistance of the police
Others tried chargebacks to Paystack, and whereas some had their cash refunded, majority had been unable to, as Paystack had already processed their funds to Zzapo.
One of many victims posting their response from Paystack
We spoke to a sufferer, “Ola”, who ordered two telephones on the introductory provide worth of ₦7,999. Describing his expertise with Zzapo Cell, Ola mentioned, “I got here throughout the Zzapo telephone on Broda Shaggi’s timeline on Instagram and for his calibre of individual, I had no motive to doubt the legitimacy of the product and firm. So I ordered for 2. Just for all the things to transform false. What pained me most was that Broda Shaggi didn’t tackle the problem. The truth is, I believe he blocked me and my pal on Instagram alongside different individuals who had been dragging him to say one thing about it. That was how I misplaced 15k plus at the moment. It actually pained me as a result of I actually wanted a telephone then.”
Ola additionally shared the receipts of his buy and his unsuccessful try to get a refund from Paystack. See photos under:
Ola’s 1st receipt for one among his Zzapo cell phone orders
Ola’s 2nd receipt for one among his Zzapo cell phone orders
Ola’s request for refund
Paystack’s response to Ola’s refund request
The final mail he despatched to paystack sadly to no avail
One other sufferer, Mrs Ojeranti, shared her story with TechCabal. She mentioned, “I don’t like remembering that interval. It wasn’t at the same time as if I had a lot cash then. However I noticed it as a possibility and I requested my pal to assist me order. That was how they ran away with my hard-earned cash.”
A deeper dive into the Zzapo Cell rip-off revealed that there was no seen CEO, board members or employees behind its social media pages. The one outstanding names and faces hooked up to the model had been the influencers contracted to advertise the telephones, who largely ignored the queries from affected events on their social media pages and reportedly blocked those that reached out to them.
Until date, Zzapo’s social media accounts stay inactive, with none responding to our requests for remark. TechCabal additionally reached out to Jackye Madu and Broda Shaggi to investigate about their Zzapo endorsement and its consequence. In response, Jackye acknowledged that 2019 was a very long time in the past and he or she couldn’t keep in mind something. Broda Shaggi, however, neither learn nor responded to our messages.
Sadly, the Zzapo case will not be a one-off. Many such scams have occurred and slowly pale with out decision. In some circumstances, celebrities are both knowingly or unknowingly used to legitimise the enterprise to the unsuspecting public. Some examples of such companies embrace Racksterli, passively endorsed by Davido, and TonsoElite, not directly given a platform by Channels TV by way of Ebuka, a preferred media character. The latest of them is the endorsement-gone-south involving popular skit maker and comedian, Sabinus, who promoted an alleged crypto buying and selling/funding firm generally known as AI Mining.
In nearly all such circumstances, the influencers merely transfer on, leaving 1000’s and even tens of millions of individuals defrauded and distraught whereas the rip-off perpetrators go scot-free. In circumstances the place they’re caught, victims hardly recuperate what they misplaced absolutely, or in any respect.
These circumstances thus increase an vital query: what’s the obligation of care owed by influencers and celebrities to their followers in verifying the authenticity of manufacturers they endorse? With the conspicuous absence of a regulatory framework making certain high quality management within the endorsement/promoting house, ought to the necessity for accountability fall to the influencers and celebrities, whose reputations and social forex are their means of creating a residing?
There are legal guidelines and rules that should curtail circumstances like this—the Investments and Securities Act 2007, instituted by the Securities and Exchange Commission and the Investment Securities Tribunal; the Advance Fee Fraud and Other Fraud- Related Offences Act. Equally, Nigeria additionally has the Economic and Financial Crimes Commission (Establishment) Act, which establishes the EFCC charged with pursuing such a majority of these crime. Nevertheless, the victims appear to be extra on the mercy of the perpetrators than the justice system.
The prevalence of such scams utilizing the endorsement of common influencers as a smokescreen could provide a callback to the regulatory move made by ARCON in 2022 to control the commercials social media influencers could also be allowed to make. One could ask if such a coverage can be efficient in curbing the rampant unfold of fraudulent actions within the business.
