The Securities and Exchange Commission (SEC) has sounded a strong alarm over the proliferation of fraudulent investment schemes in Ghana, naming News GH and Ghana News as two entities operating unlicensed platforms designed to dupe unsuspecting investors.

This public caution, issued underscores the increasing sophistication of scams exploiting social media to market products promising extraordinary returns without risk.

According to the SEC, News GH has been advertising a scheme known as the “Gold AI Rise Platform,” which claims to offer guaranteed profits by leveraging artificial intelligence in gold trading. Ghana News, on the other hand, is promoting an unnamed product that similarly assures high returns with no losses. The Commission described these claims as not only unrealistic but also deliberately misleading.

“The SEC has not licensed any of the above-mentioned entities to carry out Capital Market activities, as mandated by Section 3 of the Securities Industry Act, 2016 (Act 929), as amended. The SEC is currently collaborating with law enforcement agencies to clamp down on the people behind these entities.”
SEC

Social Media: A New Avenue for Investment Fraud

The notice arrives at a time when many Ghanaians, grappling with rising living costs and economic uncertainty, are seeking alternative ways to grow their savings. Fraudsters have been exploiting this vulnerability by posing as legitimate investment firms and using flashy online campaigns to build credibility. The SEC warned that both News GH and Ghana News have heavily relied on social media to promote their schemes and solicit funds, thereby evading regulatory scrutiny and exposing investors to significant financial losses.

Investor protection remains a central pillar of the Commission’s mandate. As outlined under Sections 3 and 208© of the Securities Industry Act, the SEC is empowered to monitor all capital market activities, ensure compliance with licensing requirements, and take enforcement action against violators. The Commission’s recent crackdown is part of a broader effort to maintain the integrity of Ghana’s financial markets and to prevent a repeat of the past financial sector crises that wiped out billions in investor funds.

“The SEC is consequently warning the general public to be vigilant and to desist from investing in these unlicensed products,” the statement stressed. It further advised potential investors to verify the licensing status of any firm or product before parting with their money. This can be done through the Commission’s toll-free number 0800100065, direct line 0302768970-2, or by emailing [email protected]. A comprehensive list of licensed capital market operators is also accessible on the SEC’s official website.

Promises of High Returns: A Classic Red Flag

The Commission’s cautionary message serves as a reminder that if an investment offer appears too good to be true, it probably is. The promise of guaranteed high returns without any associated risk is a classic hallmark of Ponzi schemes and other fraudulent operations. Over the years, such scams have devastated countless households, eroding public trust in genuine investment products and institutions.

Meanwhile, in addition to naming and shaming the operators behind these schemes, the SEC revealed that it has begun working closely with security agencies to identify, apprehend, and prosecute those responsible. This coordinated enforcement approach aims not only to bring perpetrators to justice but also to deter future misconduct in Ghana’s rapidly evolving financial ecosystem.

Industry observers have welcomed the SEC’s swift intervention, noting that robust regulatory oversight is essential for building confidence in the capital markets. However, they also emphasize that public education remains a critical component of the fight against fraud. Financial literacy campaigns can empower Ghanaians to spot red flags, ask the right questions, and avoid falling prey to enticing but deceptive offers.

While the Commission has reiterated its commitment to fostering a fair, transparent, and efficient capital market, it has also called on the public to play their part by exercising due diligence.

As the regulator continues to ramp up its surveillance and enforcement efforts, Ghanaians are urged to remain cautious, verify information independently, and report any suspicious investment schemes to the SEC.