Investment Analyst, Ebenezer Asumang has said Ghanaians investing in firms giving higher interest rates are heading towards disaster.

According to him, Ghanaians must do extensive research on an online investment firm to make sure they are legit before investing in it.

He stressed that Ghanaians need to find out from the Security and Exchange Commission (SEC) whether these online investment firms are credible before making any financial decision.

In an exclusive interview with GhanaWeb, Mr. Asumang advised investors to “Research well and know their credibility. You must know those under regulation. You see, many of these online people do things that are not regulated. By the time we say jack, they have gone ahead of you so do investigations.”

“Find out from SEC if they are regulated. If they are, go to the next step, how many branches do they have? These are physical things that you can easily see. Do you know anybody that has invested there before? If people have, what were their experiences? These are pointers or red flags to look out for. If these things are not available, I can assure you that you are heading towards disaster. All of us look out for investment but you must do a very credible one,” he told GhanaWeb’s Ernestina Serwaa Asante.

His comment comes on the back of the shutdown of the Chy Century Heng Yue Group after the Economic and Organised Crime Office (EOCO) announced that it was operating a Ponzi scheme.

It would be recalled that on February 2, 2021, the Head of Public Affairs at EOCO, Faustina Lartey in a press release cautioned the general public to desist from doing business with CHY Century Heng Yue Group Limited/Sairui E-Commerce Ghana Limited.

“The Company which is registered as an online trading and marketing services also solicits and takes/receives funds through investment packages from its customers with a promise of guaranteed Capital."

“The company operates a Ponzi/Pyramid scheme and the general public is cautioned to desist from investing and patronising CHY Mall. Therefore, anyone who transacts business with them does so at their own risk,” part of the statement read.