BoG cautions public against investing in online fraud

Mr. Augustine Amoako Donkor, the Head of Conduct Supervision Unit of the Financial Stability Department of the Bank of Ghana, has cautioned the public, particularly the immigration officers on certain financial products which promise huge returns on investments, noting that such offers are usually fraudulent.

The Head of the Conduct Supervision Unit, thus, advised the Officers to always consider the safety of their funds as they get attracted to the unreasonably huge returns promised by those financial institutions.

Mr. Amoako Donkor stressed the need for customers of financial institutions to exercise due diligence before signing on to investment products, saying that “most people are lured into investments without adequate knowledge of the critical components of the financial instrument and how it works”.

He encouraged the officers and public to avoid any suspicious financial product or company and report same to the regulator for it to take quick action.

Mr. Amoako Donkor, moreover, called on customers of financial institutions to exercise due diligence before signing on to investment products, indicating that most people are lured into investments without adequate knowledge of the critical components of the financial instrument and how it works.

He encouraged the officers and public to avoid any suspicious financial product or company and report same to the regulator for it to take quick action.

“There is a greater need for customers of financial institutions to read and understand the agreements, and terms and conditions of products and services given them by service providers before signing for them” he said.

Clarity

The Head of the Conduct Supervision Unit urged the Ghana Immigration Service (GIS) Officers to ensure that they receive clarity on all information on products and services provided by financial institutions, particularly on fees and charges and requested them to report all undisclosed fees and charges to the Central Bank.

Mr. Amoako Donkor further encouraged the GIS Officers to continuously monitor their accounts and the activities of the institutions they do business with.

“Do not go to sleep after signing on to financial products and services” adding that, they will be able to promptly observe or detect any unauthorized or illegal happenings on their accounts to enable them to raise the necessary alerts.

Mr. Amoako Donkor further urged customers of financial institutions to demonstrate responsibility by sticking to signed agreements and terms and conditions, especially in the area of credit facilities.

Mr. Donkor therefore, called on borrowers to endeavor to pay off credit facilities, adding that the credit reporting system which facilitates credit information sharing among lenders could make other lenders refuse to grant further credit to borrowers who default in loan repayment.

Speaking on customer complaint handling procedures, Mr. Daniel Mensah Sarpong of the Market Conduct Office of the Financial Stability Department of the Central Bank also stated that it is the right of every customer of a financial institution to make a complaint to the service provider and receive resolution anytime they are not satisfied with a product or service.

Mr. Daniel Mensah Sarpong added that customers may seek the intervention of the Bank of Ghana when they are not satisfied with the resolution provided by financial institutions.