SEC Forms Taskforce to Tackle Rising Online Fraud Schemes in Ghana
The Securities and Exchange Commission (SEC) of Ghana has intensified its crackdown on fraudulent online investment schemes by assembling a task force and a dedicated investigative team to tackle the growing menace. According to Rev. Daniel Ogbarmey Tetteh, the SEC’s Director General, these initiatives are part of broader efforts to curb the rise of online scams that have been defrauding Ghanaians of their savings.
Speaking on Joy News’ PM Express Business Edition, Rev. Tetteh highlighted the urgency of addressing the proliferation of online-based fraud in the financial sector. “Most of the fraudulent activities are online-based. That is why the SEC is working closely with the National Communications Authority to tackle these challenges,” he said.
The establishment of a Securities Fraud Committee, in collaboration with other digital regulators, aims to strengthen the regulatory framework and increase enforcement in the fight against online fraud. Rev. Tetteh revealed that several individuals involved in fraudulent schemes have already been apprehended with the help of the SEC and turned over to law enforcement agencies for prosecution.
“These persons have been picked up, and necessary actions are being taken against them,” he added, underscoring the SEC’s commitment to pursuing fraudsters in a space that has long been difficult to regulate.
Restoring Market Confidence
The SEC’s efforts to address online fraud come at a critical time, as Ghana’s financial markets continue to recover from the impact of the domestic debt exchange programme. Rev. Tetteh emphasized that restoring investor confidence is essential for long-term market stability. “One of the surest ways of restoring market confidence is to ensure that laws and regulations are being enforced. We are also working to demystify the capital and securities market to build confidence in the industry,” he noted.
As part of its strategy, the SEC has shifted towards a risk-based supervision model, which is designed to improve the oversight of market participants and enhance overall transparency. This approach, Rev. Tetteh suggested, is critical to ensuring that the market remains resilient in the face of evolving risks.
Investor Education as a Key Pillar
In tandem with its regulatory efforts, the SEC has ramped up investor education to empower the public to identify fraudulent schemes before falling victim to them. Rev. Tetteh stressed the importance of a well-informed investor base in combating financial fraud. “We believe that a well-informed investor is about half of the problem solved when it comes to dealing with market challenges,” he said.
To this end, the SEC has launched several initiatives, including a public education programme titled *Time with the Securities and Exchange Commission*. The programme, which provides accessible information on the SEC’s regulatory efforts and the workings of the capital markets, has garnered positive feedback from participants. “We are receiving encouraging reviews on our educational efforts, which are crucial to helping investors make informed decisions,” Rev. Tetteh stated.
Furthermore, the SEC has bolstered its digital presence by offering easy access to information through its website, where investors can find a list of licensed firms. Rev. Tetteh also encouraged investors to use the SEC’s toll-free lines for assistance, particularly in verifying the legitimacy of investment opportunities.
A Multi-Stakeholder Approach
Recognizing the complex and evolving nature of online fraud, the SEC is working in tandem with other regulatory bodies to fortify its approach. The partnership with the National Communications Authority, alongside collaboration with law enforcement and the broader financial regulatory community, is seen as essential in tackling the digital challenges facing Ghana’s financial markets.
Rev. Tetteh stressed that the SEC’s ongoing efforts are aimed at delivering long-term solutions rather than quick fixes. “We are not just reacting to the symptoms of the problem; we are developing a framework that addresses the root causes,” he said.
As Ghana’s capital markets evolve, the SEC’s push towards greater enforcement and education is expected to play a critical role in sustaining market growth while protecting investors. With a robust regulatory framework in place, the commission aims to ensure that fraudulent schemes no longer undermine public trust in the financial system.
