Today in History: Use platforms to educate public about Ponzi schemes – Economist to SEC

He stated that SEC should look out for online platforms especially ones which are used for online businesses to also advertise and create awareness about illegal businesses.

He said “if you are regulated, you want to be proactive. You may have to look at some of the advertisement options that these online trading companies use to get people and you also use the same channel to educate the people”.

Read the full story originally published on February 25, 2021 by GhanaWeb

An Economist and Lecturer at the University of Ghana Business School, Dr Lord Mensah, has urged the Security Exchange Commission to resort to better ways to educate the public on how to detect a Ponzi scheme instead of using press statements to declare some online trading business as Ponzi schemes.

According to him, SEC can use the same platforms online trading institutions use to reach their target audience.

He said “if you are regulated, you want to be proactive. You may have to look at some of the advertisement options that these online trading companies use to get people and you also use the same channel to educate the people”.

Speaking to GhanaWeb, Dr Mensah explained that these platforms are new technologies springing up and with about 40% of Ghanaians being exposed to social media and online activities, the likelihood of falling victim to these Ponzi schemes are high.

“It is about how we bring ourselves up to speed when it comes to technology and how it is feeding into the financial system, I think we have running on this manual type of financial structure for some time now and I will say that it is about time we sit down and restructure the system.

"Now, having identified that this Wiseling is a Ponzi scheme is a step in the right direction. Gone were the days you wouldn’t have gotten this hint from the regulator but I think for the happenings that we have had earlier, when it came to Menzgold and all that, it has given them some kind of an eye-opener and I want to believe that, that is what is making them issue those statements and to me, it’s a step in the right direction other than that they could have operated for so many years and duped people,” he said.

He stated that further education on financial issues must be heightened to create more awareness among the general public.

“When it comes to financial trading, trading in forex and anything dynamic, we have to sink down our education and I believe that while SEC is issuing a statement and trading is going on online, I think some of this financial education should also catch up online as well, sending text messages and warning people and all those. You may issue a statement but then how many people will have access to those statements,” he added.