Increase financial literacy to prevent investment losses- Trader’s psychologist
A trader’s psychologist, Clifford Cheqona has called on financial institutions to intensify financial literacy advocacy programs to combat the alarming rate at which traders in Ghana fall victim to scams involving unauthorized investment firms.
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Speaking to the recent closure of Dek-Nock Investment Firm by the Bank of Ghana for engaging in unauthorized deposit-taking, Clifford emphasized that this situation could have been avoided if financial literacy had been prioritized in the country.
He explained that financial literacy can significantly reduce the likelihood of traders being scammed by unauthorized investment companies.
“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 added that traders who are financially literate were better equipped to identify scams, such as unrealistic returns, unregistered investments, or pressure to invest quickly.
“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).
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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.