The Securities and Exchange Commission (SEC) says it is engaging the Cyber Security Authority (CSA) following reports that thousands of Ghanaians may have lost millions of cedis in an alleged investment scam involving Creative Walker Promotion Company (CWPC).
The reported collapse of the online platform, which surfaced over the weekend on social media, has left investors unable to withdraw their funds, reigniting concerns over the spread of unlicensed investment schemes in the country.
Deputy Director-General of the SEC, Mensah Thompson, in an interview with Citi Business News on Monday, said the Commission has scheduled discussions with the CSA to determine how to respond to CWPC’s activities and those of other platforms that have drawn public complaints.
He said the SEC received reports about CWPC over the weekend, coming on the back of earlier complaints about other platforms, including YepBit and BonChat.
“This CWPC came to our attention just over the weekend, and so this morning, I was speaking with the Director-General for the Cyber Security Authority. I had the cause to speak with him, and so we will be having a meeting later this afternoon,” Mensah Thompson said.
He added that the two institutions hope to jointly brief the press after the meeting on measures being taken to resolve the issues rocking the market.
“We want to sit down with the CSA and then have a holistic conversation about how we deal with these fraudulent investment schemes that are infiltrating our market decisively,” he said.
The SEC’s engagement with the CSA comes amid growing concern over the use of social media, personal referrals and trusted individuals to promote investment platforms whose legitimacy has not been independently verified.
Mensah Thompson noted that fraudulent schemes are increasingly deploying known personalities and ordinary individuals as marketing tools to lend their platforms an air of credibility.
“What these fraudulent schemes have done to sort of maneuver their way around the so-called faceless tag is that they use known people to promote these platforms, and it has become more like a marketing tool,” he said.
He explained that some schemes also require investors to recruit new members before they can access their returns, a model that rapidly widens the pool of potential victims.
“So you put the money on the platform, and they tell you before you earn the returns, you need to convince another person to come and join or make a referral,” he observed.
Mensah Thompson cautioned investors against assuming a platform is legitimate simply because it came recommended by a friend, colleague or other trusted person. He urged the public to establish who is behind any platform, confirm whether it is licensed by the SEC, and remain wary of schemes promising unusually high returns.
“Check and verify their regulatory status if they are indeed licensed by the Securities and Exchange Commission. Again, if they are promising exorbitant returns, please do not fall victim to these things. If too good to be true, then it is too good to be true,” he said.
