A trader’s psychologist, Clifford Cheqona, has urged financial institutions to ramp up financial literacy initiatives to address the troubling frequency of Ghanaian traders being deceived by unlicensed investment firms.
In response to the recent shutdown of Dek-Nock Investment Firm by the Bank of Ghana for illicit deposit-taking activities, Clifford highlighted that prioritizing financial education could have prevented such incidents.
He stressed that enhancing financial literacy among traders can greatly diminish the chances of them falling prey to unauthorized investment scams.
“With a solid understanding of the investment sector, traders can recognize legitimate investment products, avoid suspicious ones, and check for regulatory warnings before making investments,” he said.
Clifford Cheqona noted that traders with financial literacy are more capable of recognizing scams, including promises of unrealistic returns, unregistered investment opportunities, or high-pressure tactics to invest quickly.
He further mentioned that financially educated traders are better prepared to spot fraudulent schemes, such as offers of too-good-to-be-true returns, investments lacking proper registration, or urgent demands to invest immediately.
“The government’s decision to shut down this firm is a positive step toward protecting investors. However, the critical question remains: what measures are being implemented to help people access this vital information before they become victims? The priority for the government in safeguarding traders should be education—specifically, educating them on how to identify fraudulent investment activities,” he stated.
It is worth noting that the Bank of Ghana, in collaboration with the Ghana Police Service, has closed down Dek-Nock Investments, located in Nungua and Ashaiman in the Greater Accra Region.
This action was taken under Section 20(2)(g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).
A statement signed by Central Bank Secretary Sandra Thompson indicated that Dek-Nock Investments was engaged in unauthorized deposit-taking, violating Section 6(1) of Act 930.
The statement further noted that the Ghana Police Service is conducting ongoing investigations into the operations of Dek-Nock Investments and urged all customers to remain calm during the process.
The Bank assures the general public of its commitment to promoting the integrity and stability of the financial system.