GHAMFIN warns against rising incidents of fraud, Ponzi schemes

  • outlines measures to avoid them

Executive Director at the Ghana Microfinance Institution Network (GHAMFIN), Yaw Gyamfi, has expressed concern over the increasing prevalence of Ponzi schemes in the country; emphasising the need for citizens to exercise caution when dealing with financial institutions that promise unrealistically high-interest rates within a short period.

During a two-day media capacity training on financial literacy organised by the Ministry of Finance in Tamale, he stressed the importance of citizens refraining from engaging with institutions that make such promises, as their savings are often stolen through these fraudulent means.

“Ponzi schemes are on the rise in the country as many citizens’s savings continue to find their way into the wrong hands,” he said at the event, which was sponsored by the World Bank under the Ghana Financial Sector Development Project and facilitated by Asamoah and Williams Consult.

It was aimed at enhancing the knowledge of media practitioners on financial reporting, and aiding in the identification of fraudulent financial institutions that tarnish the profession’s image and harm citizens’ investments, explained Emmanuel Sackey, a representative from the Finance Ministry.

Mr. Gyamfi further highlighted that many individuals have fallen victim to these Ponzi schemes due to a lack of information that would enable them to make informed decisions. Despite warnings issued by the Bank of Ghana (BoG) and other regulators, certain individuals and institutions continue to operate while falsely presenting themselves as certified organisations endorsed by the BoG or other regulatory bodies.

Modus operandi

He further explained the modus operandi of these Ponzi schemes, stating: “Over the years, there have been Ponzi schemes around, but what makes these schemes rise is that most of them identify gaps and craft something appealing to one’s emotions”.

He revealed that some schemes offer assurances of a 30 percent interest rate within two months, which entices customers. Additionally, they pay individuals to testify to the legitimacy and security of the transactions, further luring the public to patronise their services.

To combat these fraudulent activities, Mr. Gyamfi advised the public to request their licencing or permits from regulators and local assemblies before conducting business with any institution.

He emphasised the importance of double-checking the legitimacy of financial organisations to ensure their operations are authorised. Mr. Gyamfi appealed to both regulators and the public to collaborate in removing these fraudsters from the system, urging regulators to act swiftly upon receiving information regarding such schemes. “We continue calling for alertness and for everyone to exercise caution and carefully consider which institutions they choose to transact business with, as failure to do so may see them fall victim to fraudulent activities,” he added.


GHAMFIN’s boss also called on the media and the general public to assist in identifying and exposing fake institutions engaged in these schemes. He specifically requested media houses to verify the authenticity of organisations before advertising their products, as such endorsements can inadvertently contribute to defrauding citizens.

Also, the Executive Secretary-Ghana Association of Savings and Loans Companies (GHASALC), Tweneboah Koduah Boakye, highlighted ongoing efforts to enhance the professionalism and capacity of savings and loans companies in order to safeguard citizens’ investments.

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