The collapse of alleged investment schemes may grab headlines every few years, but the underlying script rarely changes.
The script keeps repeating; new names emerge, bold promises are made, early investors celebrate, but eventually thousands of customers are left counting losses.
This is the caution from accounting and finance professional Dickson Assan, who says the latest CWPC controversy mirrors a long line of failed schemes, including Pyram, R5, DKM Microfinance, Menzgold, QNet and Loom Money.
According to him, while the branding evolves, the business model often remains the same: fraudulent schemes that depend on money from new participants rather than genuine economic activity.
“The names change, but the stories remain the same,” he remarked.
Old Scam, New Packaging
Dickson Assan explained that Ponzi schemes pay returns to existing investors using money contributed by new investors instead of profits from legitimate investments.
Similarly, pyramid schemes reward participants primarily for recruiting more people rather than creating real products or services.
He noted that many people are persuaded that each new scheme is somehow different from those that previously collapsed, only to discover too late that the warning signs were identical.
The Red Flags Investors Often Ignore
To avoid becoming victims, the accounting professional urged prospective investors to ask a few basic questions before committing their money.
The first, he said, is whether the company can clearly explain how it generates the returns it promises. If profits cannot be traced to a genuine business activity, investors should be cautious.
He also warned against schemes that reward participants mainly for recruiting friends, relatives, or colleagues, arguing that such models become unsustainable once new members stop joining.
Another major warning sign, he said, is the promise of unusually high or guaranteed returns.
“No legitimate investment can guarantee extraordinary profits without risk,” he stressed, noting that even Treasury bills, fixed deposits and listed shares fluctuate in returns.
Check Before You Commit
He also advised investors to verify whether firms collecting public investments are licensed by the appropriate regulators, including the Bank of Ghana or the Securities and Exchange Commission.
He further encouraged investors to confirm that they can withdraw their funds freely, warning that excuses about system upgrades, delayed payments or account reviews often signal an impending collapse.
He added that high-pressure sales tactics and emotional appeals should also raise suspicion, especially when people are encouraged to borrow money or rush into investments without proper due diligence.
Greed Often Fuels the Cycle
Dickson Assan cautioned against relying on testimonials from friends or family members who may have received early payouts, explaining that many fraudulent schemes deliberately reward initial investors to build credibility and attract more victims.
Once fresh inflows begin to dry up, however, the schemes typically unravel, leaving later investors with substantial losses. He emphasized that genuine wealth is built over time, not through promises of quick riches.
