The Lead of Financial Crimes and Anti-Money Laundering (AML) at e-Crime Bureau, Eric Kwaku Mensah, has emphasised the need for broader public awareness to combat the rise in investment scams.

His call for vigilance follows the Cyber Security Authority’s (CSA) report of a sharp increase in online investment scams, leading to significant financial losses.

The Authority says between January and August 2024, 149 cases were recorded – resulting in a total loss of GH¢1,986,057. This marks a considerable jump from the 63 cases reported in 2023, which saw losses amounting to GH¢421,621.

In its recent release, the CSA explained that these scams involve fraudsters replicating legitimate investment company websites and luring unsuspecting individuals with promises of high returns within a short period.

“Victims are lured through social media advertisements, emails and text messages that promote these fraudulent investment opportunities. The scammers also use fake testimonials to convince victims of their schemes’ legitimacy. Once the victims sign up and make initial investments (usually by mobile money), they are shown fake returns on the investment and allowed to withdraw a fraction of the invested amount to build trust.

“Victims are requested to make more investments or pay fees in the form of taxes when they try to withdraw significant amounts of their investment. Victims with significant investments eventually lose access to their accounts and cannot contact the fraudsters,” the CSA expatiated.

Increased public awareness needed

Given this situation, the Authority urges the public to be vigilant and cautious when presented with investment opportunities; particularly those offering unrealistically high returns with minimal risk.

It also advised verifying the credibility of such opportunities with regulatory bodies like the Bank of Ghana and Securities and Exchange Commission before committing any funds.

Adding his voice, Mr. Mensah stressed that the responsibility of preventing these scams goes beyond regulators and government agencies. “We all need to get involved,” he said, pointing out that churches, mosques, social groups, schools, radio stations and advocacy groups must actively raise awareness of investment scams to protect their communities.

By continuously educating the public, he is confident these institutions can help people identify potential scams and safeguard themselves from falling victim.

He also urged increased intelligence efforts by organisations to crack down on perpetrators of these crimes, stating that without enhanced enforcement the problem will persist.

Best practices

He further advised investment companies to conduct regular surveillance of cyberspace to monitor for any fraudulent activities that could harm their reputation.

“You must ensure that your identity is not being misused for illicit activities,” he said.

For individuals, he urged caution that when dealing with unsolicited investment offers “be sceptical of opportunities that promise high returns with little or no risk,” he warned.

He advised potential investors to visit official websites directly instead of following links provided by suspicious emails or messages, adding that visiting the company’s physical branch for verification is a more secure option.

He also noted that fraudulent schemes often pressure people into making quick decisions. “Avoid investments that require immediate decisions or try to rush you into making a commitment,” he advised.