Expert Urges Due Diligence as Ponzi Scheme Concerns Grow

Cybersecurity Expert Emmanuel K. Gadasu has urged Ghanaians to conduct thorough due diligence before committing their money to investment schemes, warning that personal recommendations and trust should not be used as substitutes for independent verification.

He said prospective investors must take responsibility for establishing the legitimacy of investment platforms, particularly as fraudulent schemes continue to exploit relationships and the confidence people place in friends, family members, religious leaders and colleagues.

His comments come amid renewed public concern over the collapse of two Ponzi schemes in Ghana, which has resulted in financial losses for investors and sparked outrage among affected persons.

Speaking on the Business Breakfast on Zed FM, Mr. Gadasu said the tendency to invest based on recommendations from trusted people could prevent individuals from conducting the necessary checks before parting with their money.

“Because of the trust you have in your friend, you are likely not to make a good assessment. But trust me, your good friend, your spouse, your pastor can also make a mistake,” he said.

He stressed that while a recommendation from someone known and trusted may appear credible, it should not be considered sufficient evidence that an investment platform is legitimate.

“You have to do your independent assessment, investigation about the platform,” he said, urging investors to verify the platform and establish whether it is authorised to operate.

Mr. Gadasu advised prospective investors to make use of information available from regulatory authorities before making investment decisions.

He said investors should check the websites of relevant regulators and conduct basic online searches to establish the credibility of investment platforms.

“Then, secondly, go and check on the regulator’s website. Do a Google search,” he said.

According to him, such checks are particularly important because fraudulent schemes can be presented in different forms and under different names, making it difficult for unsuspecting investors to immediately recognise the underlying risks.

He therefore advised the public not to be persuaded simply by the presentation of an investment opportunity or the experiences being shared by others.

Mr. Gadasu also cautioned Ghanaians against schemes that promise extraordinarily high returns with little or no apparent risk.

He said the prospect of making exceptionally high profits should prompt investors to investigate further rather than rush to commit their funds.

“If it is too good to be true, every investment carries risk. So if you are going to get 100 per cent profits or earnings on your investment, no, it is not true,” he cautioned.

His warning highlights the need for investors to understand the relationship between risk and return before committing their savings.

He said claims of guaranteed or unusually high returns should not be accepted at face value, particularly where the operators fail to provide clear information about how the returns are generated.

Mr. Gadasu further warned Ghanaians against relying on testimonials and forwarded messages circulating on social media and messaging platforms as proof that an investment scheme is genuine.

He said some individuals may share claims that they have successfully invested and withdrawn profits without personally verifying whether the information is accurate.

“Sometimes people put certain things on platform that, ‘I have gotten, I have gotten.’ Then the question: Are you sure you have gotten, or you are just forwarding what somebody told you?” he asked.

His comments come at a time when the collapse of investment schemes has renewed calls for greater financial awareness and stronger investor vigilance, with members of the public being encouraged to verify the regulatory status and business model of investment platforms before committing their savings.